that
in his view their drilling results were not yet sufficiently conclusive
to indicate that a mine could be established. He also felt that they
should not be at any disadvantage in obtaining favourable lease terms
from the Government if the application was deferred until they could
speak more positively about the area in question.
He
then told us that he already had certain commitments to other groups in
connexion with a possible flotation. He mentioned that the South
African Townships had been promised an interest, and he also referred
to one other group with which discussions had taken place two or three
years ago in the event of a flotation taking place. . . .
Marks
did state, however, that they would welcome our participation in the
business in the event of their going to flotation, but he indicated
that such a participation would only be a small one in view of their
existing commitments to other people.
Both
Unger and I felt that there was nothing further to be said and we have
accordingly had to leave things like this. The only other way in which
we might obtain an increased interest in these areas is either through
Lyden-burg Estates Limited, or through South African Townships. As
regards the former, you know that Roberts and Jacobson, who own a
controlling interest in the company, have on several occasions wanted
us to acquire their interest, and if you thought it worth while we
could renew our discussions on this subject. The interest we could
obtain in this way, however, would only be an indirect one and I do not
know what it would cost. As regards the South African Townships, it is
obvious that they are not in a position to finance their participations
in such business. It might, therefore, be worth while to mention the
matter to Jeppe so that when the time comes they would come along to us
to assist them in the finance. . . .
I
should perhaps make it clear that Marks emphasized that finance was no
problem, either at the present time or when they went to flotation,
although I should imagine that when the flotation stage is reached they
will probably be only too glad to have strong financial partners.
Will you let me know if you think we should do anything further about this matter?
This
move came to nothing, but, as already pointed out, in May 1941 Anglo
American Corporation had agreed to participate in the financing of the
second stage of Western Holdings activities, shaft-sinking and
development in the area which was subsequently to become the St. Helena
Mine. Moreover, at the same time, Anglo American Corporation agreed to
take up, free of commission, part of the issue of 300,000 reserve
shares of Western Holdings itself.63 These steps gave Anglo
63 The
chairman of Western Holdings told the shareholders at the extraordinary
meeting held on 8 May that 'under normal conditions these shares would
have been offered to shareholders but Treasury restrictions in
England—where many of the company's shares are held —make such an offer
impossible'.
