Lively Meeting of Shareholders

There were angry scenes at the annual meeting of shareholders of Day Dawn (New Guinea) Ltd. in Sydney on June 17.

The directors took the extraordinary course of barring out the press reporters: so that a firsthand report of proceedings is not available.

The directors, in a circular to shareholders, pointed out that, though the balance-sheet as at December 31 shows cash reserves at £9420 against external liabilities of £4473, all cash resources are now depleted and further cash is required to carry on operations. They proposed to issue 600 8 per cent. £100 debentures to be offered to shareholders pro rata to present holdings. They considered that £6000 will be sufficient to commence operating the

cyanide plant and to carry out boring operations.

An application for financial assistance had been made to the Administrator of New Guinea, but this would take some time to decide, and immediate capital is necessary. It is estimated that there are at least 30,000 tons of tailings which have been assayed at 4dwt. gold and 12oz. silver per ton, the approximate recoverable value being conservatively estimated at £2 per ton. Recovery cost should not exceed 15/- per ton. There is 200 ft. of payable values in the bottom level.

The meeting carried a vote of “no confidence” in the board of directors. The retiring directors (Messrs. O’Neill and Walter Murray) were defeated, and two new candidates (Captain C. McKenzie and Mr. K. O. Loane) were elected.

The position, in mid-June, was that Day Dawn mine was definitely closed down, so far as mining is concerned, but it was hoped to arrange sufficient capital to proceed with cyaniding.

In the year ended December 31, 1934, Day Dawn (N.G.) Ltd., made a net profit of £12,477. With £20,169 brought forward, £32,646 was available, out of which was paid a dividend absorbing £6000. The surplus of liquid assets was then £9257.