♦ XXVII ♦
Western
Holdings and African and European Investment Company had, as already
mentioned, a common frontier to the east of the former, and the two
companies were, by shareholdings, related to each other. The area of
operations of African and European, which originally held the compact
area known as Block 7, was also to undergo an expansion, so that that
company, together with associated concerns, was to hold an additional
and contiguous area, known as Block 8. This accession of strength was
due to the acquisition from Lydenburg Estates Limited of options over
16,000 morgen north-east of Block 7. On 24 December 1943 African and
European made an offer to Anglo American Corporation,71
which was accepted. African and European were to undertake sinking of
boreholes and to expend up to -£100,000. In return African and European
acquired a 60 per cent interest in any subsequent subscription rights.
Anglo American Corporation was offered a 25 per cent interest in the
boring scheme, together with a 25 per cent interest in the 60 per cent
participation rights accruing to African and European. By this time,
Anglo American Corporation's financial interests in African and
European had already increased: the 1943 report of Anglo American
Corporation had announced that it had acquired a 'substantial
shareholding' in African and European. Anglo American Corporation had
also acquired a substantial shareholding in Lydenburg Estates itself.
The
year 1944 was, indeed, one of great activity. Almost simultaneously
with this agreement, Anglo American Corporation concluded an agreement
with New Union Goldfields whereby the former would bear 50 per cent of
the costs of a geophysical and geological investigation over 400 square
miles in the Verkeerdevlei area of the Orange Free State, the
investigation to be under the supervision of Anglo American
Corporation, 55 per cent of the notation rights accruing to it.
A
further opportunity for participations was afforded by the entry into
the Orange Free State of Lydenburg Platinum Limited, a concern closely
associated with the Transvaal Mining and Finance Company Limited, from
which latter it acquired large option interests in the Odendaalsrus
district—an area of approximately 70,000 morgen, 'north
71 Cited at 273 rd meeting of the board of directors of Anglo American Corporation held on 16 March 1944.
