Show significance OF consolidation PACT OV OF NEVADA NEVADA consolidated AND RAY CHINO ray consolidated shareholders at a special meeting held may authorized the sale of the companas comp anys properties and assets to nevada consolidated for principal pl amount of nevada consolidated 15 year 5 per cent debentures dated july 1 1 1926 the holder of each share of ray stock is entitled to 15 face value of such nevada consolidated debentures ures and seven cents per share in cash representing the interest from may 26 to july 1 next nevada squires acquire sall all the properties assets rights privileges and franchises chi 1 ses of ray consolidated consolidate d and assumes all the debts and obligations igat ions of the latter the sale has been fully consummated mat ed and nevada debentures debento res are ready for fuance to ray stockholders in the proportions above stated these debentures will be issued only in multiples of 15 and no deben ture cewill will be iss issued aed for less than 15 says the boston commer serial ial in its review of the big copper merger geraer A glance at what will be accomplished by y the te nevada ray ay merger proves inte interesting r esting there is n no 0 doubt that the association Q aaion of the two companies will bring about m economies which would be impossible M 0 with both ing as distinct corporate entities in other words the combining 0 of f the physical properties and assets of ray nevada under ader one management nana gement should work out to the mutual advantage of each the merger of ray wi w ith ih nevada creates one of the largest independently owned c opper copper producing enterprises terp rises of this country or the f he world bre ore reserves ton tonnage n age and quality A glance at joint ore reserves is of interest A re capitulation Pitula tion chino ino properties as of ore res reserves erves at the ray aji dl at close of 1925 shows that there NN will rill be mined from the ry ray oret bodies tons average averaging ink per cent copper ad alfrom from C heijo including stockpile tons of per cent ore making estimated sti Mated total future production for both ore bodies 0 of f Ve ii ier tons averaging g p per ce cen ifal it is is estimated at af close of 1925 that the N nevada evada property properio contained contained tons of ore av averaging erasing per cent thus ift 1 l t c can an b e natively conservatively sat ively estimated that from the joint ray kay chi ahmo 1 l no nevada properties more than tons of ore averaging per ce cent n t willbe iville mined in the fu ture on the T basis of ore reser serves as recalculated at close of f 1925 both the nevada and ray chino properties have a f future u tu re operating lif life e 0 of f a about bi out u a qu quarter arter of a century at the present i rate of operation this statement of jointure joint join tore ore reserves e arves may be taken as entire entirely jy cons conservative erva tiye it can be definitely stated staged that additions t thereto will be made as a result of further testing and dr drilling i ailing of aieaz areas which have not as yet been fully delimited by the two companies production and costs production of nevada consolidated in 1925 was was 73 6 pounds of copper and t that ha bof of ra ray y thus the comb combined inid prop properties at ore present sent operating rate may be expected to produce close to pounds of refined copper during the current calendar balenda byear year rays 1925 report discloses an av averse copper producing cost of 1084 10 84 cents a pound including all fixed and general expenses but before charges for de depreciation p and depletion this figure is also arrived at after crediting precious metal values to copper producing 11 costs nevada last year produced its me metal talat at a cost of 1 1039 cents per pound including all ta taxes X es and general expenses and depreciation i atit but ext excluding luding federal feder al taxes and depletion co cost f indis in this aase case is also figured aft after I 1 er cr crediting edit miscellaneous income income and valde 0 of f gol gold d and a n d silver recovered costs for each company in first quarter of 1926 were approximately on the sanie same basis each company has in the past several years effected an improvement in cost position due to additions ano betterments to both mining and milling facilities which have resulted in substantial working economies nevada con com Is best equipped from the equipment and fa facilities cili ties standpoint neva nevada d a is in better position than ray its plant may be termed slightly more modern and efficient raywill tray aul wul have to make further sizeable expenditures before its position as regards equipment will be as favorable a as s nevadas furthermore ray other things being equal will probably always be A a slightly higher cost than nevada the character of the ore I 1 deposits at the ray mine is such that minin mining g costs as app applying lying to the total ore reserves of these mines will average higher than similarly applied apalie d costs to the rema remaining ini i i ore reserves of the nevada company both ray and nevada may ibay be expected in the near future to get op operating aerating costs below 10 cents a pound improvements prove ments in milling recovery etc rays milling recovery last year averaged per cent and nevadas pr per cent nevadas show showing ing in this respect was the best in its history to improve the ray percentage of min mining ing and treatment recovery additional funds would have to be d disbursed as above stated nevadas trea treatment truent facilities on the other hand are as a result of expenditures in the past several of the most modern and effi efficient type and so constructed copy cony y years ears could be still further expanded and bettered strutted ted d that they with but a small additional outlay of funds because of its more efficient mining and treatment facilities nevada has bebenin been in the past seve several ral years a slightly larger per share earner beirner than ray in point of annual production action capacity figures about pounds or 53 pounds ray now nevada consolidated ner rs share fiaro farahe for the 0 outstanding capital stock soli dated could produce annu annually ally al ly operating at capacity close chose to pounds or about 59 P pounds qu nasi 1 fo fop reach r each share of stock ftp outstanding j r 7 at 4 |