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Show Page Fou October 21, 1959 The Westers Mineral Surrey, Salt Lake City, Utah STOCKHOLDERS MUST AGREE Must Fifteen New Escrow Funds, Love Says U-Fir-ms Eye Exchange Plan Hetla, Bunker-Hi-ll A major exchange between two Idaho mining companies will come under die scrutiny of stockholders at a special meeting October 26. Under the proposed exchange Hecla Mining Co. will exchange 50 per cent interest in Sullivan Mining Co for 275,000 shares of Bunker Hill & Sullivan Mining and Concentrating Co. common stock. It will also sell its 494,696 shares of Pend Oreille Mines and Metals Co. stock to Bunker Hill for $2,102,458. According to a proxy statement mailed to Hecla stockholders in owner of Sullivan, and will have September, neither transaction 864,519 shares or 36J8 per cent will be approved unless both of the outstanding stock of Fend Zodiac to Mine Six Mont. Sites Zodiac Uranium Corp., has acquired a copper, lead, silver and gold property, near Dillon, Mont., assays of which run from $50 to $250 per ton, according to Leland Davis, chief geologist for Zodiac. Davis said equipment is now are. Oreille. Under proposed transactions Hecla will Increase its stock going on the property and with Bunker nill will become sole holdings in Bunker Hill to 300,-00- 0 open pit mining possible. Zodiac shares or 18.95 per cent. The should have a carload of ore company already holds 25,000 shares of Bunker Hill. ready for shipment within a Hecla will continue to operate week. Davis said the project the Star mine at Burke, Ida. on looks beautiful and geological a fee basis if the proposal goes indications are that mining opthrough. They wil receive $30,-00- 0 oil a in bad record Despite annually as operating fee and erations can be started at six production in the past Oregon $70,000 annually as net rental separate locations. is experiencing an oil and gas for use of its facilities. Both companys officials see Zodiac also has several big exploration flurry which overshadows the uranium hunt. distinct advantages in combining drilling contracts in the making. the two companies. Hollis M. Dole, director of the Bunker Hill sees sole ownerFrontier Drilling Company does state department of geology and ship of Sullivan as making posall of the drilling for Zodiac. Mr. minerals industries made this obsible substantial operating ecoDavis said Zodiac received a $500 servation this week. nomics. The Pend Oreille stock, More check from the government rethan 2,000,000 acres of they say, is a sound, long range asset upon advantaland is now leased to lead-zin- c cently for its first truck load of Oregon oil terms." major companies, he said. geous ore shipped from the companies Leasing is An advantage seen by Hecla continuing at a rapid officials is that of gaining greatproperties on the Indian Reserva- pace. er diversification in base metals tion near Cameron, Ariz. At present ten major oil comby exchanging an interest in a panies have leases in Oregon and company almost wholly dependseven wells are in progress. ent upon zinc for a company In the past Oregon wildcatters with silver and lead as well as Alcoa Plans Include have been discouraged by the zinc. Hecla also foresees the marEast Canyon Site seeming lack of oil. Out of 200 wells drilled only one hole has ketability of Bunker Hill stock, Alco Uranium Corp., has acdeveloped even a slight show of although the company has no quired new uranium properties oil. Intention of selling it, according in East Canyon, which are deto the report. scribed as excellent by PresiHowever, according to Ralph Under the proposal Hecla will S. Mason, mining engineer Ore- receive $4.25 a share for 494,696 dent Ben D. Browning. gon state geology department, shares of IPend Oreille stock. Several important uranium Oregon is a relatively virgin Pend Oreille is currently one of mining operations are now under country with favorable geological the suppliers of custom way in the vicinity, some pro- formations for oil. He feels that ores large to the Sullivan zinc plant ducing and shipping or that oil will be found in the state if and the Bunker Hill lead smelter. assays better than commercial drillers are to go deep Heclas willing capipresent working value. enough. tal of approximately $1,900,000 is considered Inadequate to com- Oregon Acres Probed For Oil Possibilities 7c4aif for 7 he 'urUey " u(tAci-i(-e With a total of 15 applications to sell stock, filed by new uranium wining companies, Chairman Milton H. Love, of the Utah Securities Commission announced that the total Companies operating in the uranium industry in the Beehive State has now reached 265. Chairman Love was not sure how many, if any, of the new companies will obtain official approval. The total of new applications for this year is only ' that of last year. Under new rules, now In effect, the Commission will insist that money raised shall be escrowed in a bank, during a period when the Commission Is determining to its own satisfaction whether the applicant company can raise enough money to finance its proposed minimum program. Finances obtained from the minimum program should be sufficient Love said, to protect the public. Ultimately, he said the money will be returned to the company from escrow. If and when the Commission, believes it lg In the public interest to so, two-third- s, move. Uranium Harder To Handle On Plateau, Miner Explains equipment air are unquestionably and needed. Machinery now in general use in low-seaAnother reason is the widebituminous coal mines are now spread use of diesel-drive- n equipbeing successfully adapted to ment underground, again requirmechanized mining of low-seaing extra ventilation. uranium deposits in the ColoProblems arise too from the rado Plateau, Harold B. Spencer, isolated location of most of the m m president, Centennial Development Co., Eureka, Utah, reports. Spencer, who has supervised uranium mine development projects since 1947, pointed out that problems not usually encountered in metal mining complicate efficient recovery, of uranium ores and emphasize the need for economical mining methods. Ventilation is of more than usual importance, he said. One reason is the presence of radon gas, and although much remains to be learned about its effects and control, large amounts of , properties. Power must usually be supplied from diesels and water is often hauled over great distances. Lack of communications and ready access to supply sources cause difficulties. Labor problems are acecntuated, and this factor is of great importance in application of mechanized systems, since specialized training is required tor the individual jobs and integrated performance between the various workers is of much greater importance than in ordinary mining practice. plete financing its uranium venture at the U A I property .near Moab, Utah. Estimated cost of the project is $800,000. The company also has an exploration project in the Silver Mountain area near Mul-laIdaho estimated at $300,000. Hecla officials feel Increased proceeds from the exchange and cooperation between the two companies would provide funds to complete these projects. In order to close the transaction Bunker Hill stockholders must approve an increase In capitalization since all of its 1,308,-00- 0 shares of common stock are now outstanding. Bunker Hill directors have suggested an increase to 2,000,000 shares. However, the company has not reported plans tor issuance of additional shares ex cept to complete the Hecla, Bunker Hill proposal. n, 15.00D.000 SHIRES SAN RAFAEL . Uranium Company Of Maryland . Non-assessab- le Capital Stock Par Value Offering Price Pel Sh4re nie Company is in the mininc business and is presently in the exploratory stage. The Corporation holds unpatented claims in the Dry Wash and San Bafael Swell anas of Emery County, Utah An Offering Circular May Be Obtained from Las DEAS0N AND NICB0LS 5th Sf. Bide. Vegas, Nevada - DU 11 send me a copy of the offering circular relating to San Uranium Company of Maryland. 160 Soath West Temple Name Address City State. - The newest, most sensitive, and sturdiest counter for discovering radioactivity. Every model abolutely guaranteed to outperform any other counter of equal price. Prospect from auto or airplane. Over 1000 now in use. Other models at $239, $495, and $795. Dealer inquiries invited. 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