your
company whereby the Anglo American Corporation of South Africa Limited
and New Union Goldfields Limited are scheduled jointly to subscribe
and underwrite new capital therein. Your company will be under the
administrative control of New Union Goldfields Limited; but the
technical work in regard to an area of some 10,000 morgen in the Orange
Free State will be carried out by the Anglo American Corporation of
South Africa Limited, including drilling operations. In addition to
rights over an extensive potential mining area in close proximity to
where encouraging drilling results near Odendaalsrust have been
encountered, your company will also hold approximately 15 per cent
interest in any flotations covering the farms Adamsonsvlei, Tarka and
Jurgenshof situated near St. Helena. The Selection Trust Limited, of
London, have advised through the Union Corporation Limited that they
have exercised the option to acquire the mineral rights of these farms.
At
an extraordinary general meeting of the shareholders held in February
1944 an elaborate series of resolutions were submitted and passed. The
capital was reduced to -£25,000 and then increased to .£200,000 by the
issue of shares ranking pari passu with the 'reduced' shares.
Option contracts were taken over from Jacobson and Allan Roberts
directly (and from the former trading as Lebato Investments), in
addition to options taken over from New Union Goldfields. The essence
of the arrangements with Anglo American Corporation were that:
The
Anglo American Corporation of South Africa Limited will undertake
geological, drilling or prospecting work on the farms set forth in
[the] resolutions . . . including the sinking of at least one (1)
borehole, to commence within a period of six (6) months from date, the
cost of which work is to be borne as to 60 per cent by the Anglo
American Corporation of South Africa Limited and as to 40 per cent...
by the company. Any benefits resulting from the investigations are to
be allocated in the same proportion as the cost of the work, that is 60
per cent to the Anglo American Corporation of South Africa and 40 per
cent to the company.
The
agreement contemplates as an alternative possibility that the company
will become the operating company, in which event the Anglo American
Corporation of South Africa Limited will decide the amount of the issue
of fresh capital and the price at which shares are to be issued and
will have the preferential right to subscribe or procure subscriptions
for 60 per cent... of the necessary additional working capital with the
remaining 40 per cent to be issued to such persons as the company may
decide.
Through
these arrangements Wit. Extensions had become an important factor in
the area round Odendaalsrus, and the position of Anglo American
Corporation also was greatly strengthened.
