Solomon Islands

Gold

Investing Public Is Shy

HP HE flotation of Solomon Islands Gold ■®- Sluicing Limited, for some reason, has not been a success, and the directors of the company are now seeking further information before deciding what to do.

It was proposed to form this operating company, with £50,000 of new money, to work a gold bearing area on the island of Guadalcanal, British Solomon Islands, which had been intensively prospected during 18 months by Mr. H. J. Ault, on behalf of Pioneer Syndicate N.L. The history of the goldfield was recounted in our issue of February last.

The area appears to have been tested and proved, and there was every indica tion that it could be worked with advan tage and profit. It was extraordinary, therefore, that the public failed to sup port this flotation —especially as the same public had subscribed tens of thousands of pounds in recent times for the develop ment of what were merely silly holes in the ground, in Fiji, Papua, and New Guinea.

We are inclined to think that the cause of investors’ shyness was the proposal of the directors to allot no less than 100,000 5/- shares to the “Vendors,” while offer ing only 200.000 5/- shares to the public.

There would seem to have been too many fingers in this pie. There was the Guadal canal Prospecting Syndicate; it became Chuba Limited and Guadalcanal Limited; then Pioneer Syndicate N.L. came into the picture: that was followed by Solo mon Islands Gold Development Limited; and it was the latter concern which was to receive 100,000 shares.

We understand that Mr. T. R. Victor, the well-known mining engineer, will leave shortly for the Solomons to have a look at this goldfield and, when his report is received, important decisions will be made.