The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-12-09
HOW TO RAISE CAPITAL
FOR FINANCING A MINE
DEMAND FOR LARGE PRELIMlN-
AIRY CASH PAYMENT USU-
ALLY A DRAWBACK.

The problem of financing develop
ment of mining properties involving
as il does, an equitable agreemen
between operator and capitalist, il
one that should receive considerable
study and discussion" says Henry NJ
Atkinson. mining engineer, manager
of r. II. officer & Co, in the Sail
Lake Tribune
1T is a safe assumption that every
mining engineer knows of at least
some one meritorious miuing property
whether large or small. that in his
judgment will make a profitable en-
terprse. 1t is another safe assump-
ton that in almost every city of the
east or the middle west there is a
group of men who have surplus
funds which they would like to in
vest in a legitimate mining venture.
Unfortunately the engineers who
know of the desirable mine and these
groups of capital do not know one an
other, and the union of capital and
opportunity is missed
many years see that almost every
one engaged in mining knows of some
persons who stand ready to make a
legitimate investment OFTEN, how
ever. the same person who knows of
the existence of a capital fund Of say
$150O00 only knows of a good invest
ment which requires 100000 Obvi-
ously it is not possible for this in
termediary to bring investment and
investor together. Again. each of MS
knows the type of investor who re-
iects everything suggested to him be-
cause, as he says this isn't big
enough for me. 1t is hopeless to I'M
dertake to interest such capital in
anything.
Great Opportunity Lost.
in this connection il is interesting
to recall the incident related by James
d. Hague of his early experience in
the Michigan copper region. In his
youthful days he was doing geologi-
cal work in that territory and the
possibilities of the great copper con-
glomerate' deposits appealed to him
He obtained options. merely for the
asking in many cases. on a square
mile of this territory and took these
options back to his friends i'm the east
They all listened respectfully to him.
but told him this was a new country.
the outcome was unknown, and the
proposition was not big enough SO
all his options lapsed and nothing
came of his efforts Later. this
ground, which could then have been
bought for $4,000, became the fam
GUS Calumet & Hecla mine on which
the dividends have amounted to 1854
per share, or a total of s1574OO. 600.
since its Incorporation in 1871
ION the other hand, willing capital
is presented time after time with the
sort of proposition in which it is not /
at all interested, nor will it become in |
ierested in the future This condi-
lion certainly does not make for |
union of capital and opportunity. But |
such a circumstance is not wholly the |
'ault of the intermediary who sug- |
rests the investment For instance. /
Turing the last ten days I received a
etter from the New York engineer of
me of the largest copper companies
n the world asking advices regarding
he vanadium situation in a certain
district Now 1 happened to know
omething of the conditions regarding
'anadium ore and claims both there
md elsewhere but I would never have
bought TO suggest vanadium to this
corporation, because I would natural
ly have assumed that their interest
would be wholly in copper. Again
hort time since l found that fam
ms gold-silver mining company was Z
agerly seeking a lead-zinc property.
his information came casually and
Without it my thought would have
cen to suggest to this company only
old-silver mining opportunities.
therefore,. in order to unite capital
nd opportunity one must seek fur
her than merely known buyers Of
metals
Ask Payment Handieaps. ]
about two weeks ago New York
lgineer came to me looking for
kind of property such a
-operty was known to me and sug- d
asted to him as an excellent oppor- e
nifty 1t happened to the property j,
question has had a record of a t
'oduction of more than S2,000.00O. e.
Id only the fall in the silver market q.
1898 and the deaths of the import, Il
1t owners stopped production The a
inc was not bottomed On the con g
airy. its possibilities are greater to-
" than at any time heretofore be- r
use of the greater development UNI
rground. Now an attractive prop
itiOn to capital is always found in h,
undertaking where the owners of
e property have enough confidence e.
its future to match their property N
ainst the capital needed to put it
an earning basis. This is espe- r.,
lily true where the property is
her quiescent or operating only on Ia
hand to- mouth basis. Such was
e case in the instance in point but
2 owners of this quiescent property -