Gold Standard | Gold Mining | Uranium Mining in South Africa Page 594



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	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'.