OCR Text |
Show Five Prominent Mining Con' cerus in Park City District fj in Consolidation. ft! THOMPSON-WEST QUINCY 1 MAY USE DRAIN SYSTEMS 1 Ore Bodies in These Mines Ma If Now Be Mined Without B Obstacle. I Negotiations begun three years ago wero completed Tuesday with the signing H of a contract by five mining companies in R the Park City district for the forming of a consolidated company. By the tcrni3 B of the contract the Ontario Mining com- 91 pany, the Daly Mining company and tho Sm Daly West Mining company, in consid- M oration of stock In the new consolidated JIB. company, ugrco to allow the extension of w their drainage systems to tho property of M tho Thompson and West Qulncy Mining companies. AM The West Qulncy nnd the Thompson jtV properties adjoin those or the Daly and 9m the Daly West companies. The ore show- BB irig of both the Thompson and the West H! Qlncy companies has been very good, but nl drainage facilities were lacking and tho UJ mining operations were hampered to a BHj great extent. By the terms of the con- Ifi; tract, which was signed Tuesday, tho drifts and drainage tunnels of the ad- Xgi joining properties may be used by the XS: new consolidated company, not only for BRl drainage purposes, but also for the pur- Eg poso of transportation of ore and other mm materials necessary in the conduct of JH mining operations. M Negotiations Long Continued. II' Tho negotiations for the consolidation of jH these companies were llrst begun about three years ago by the late J. D. Wood. Since his death these negotiations have been continued by W. R. Hutchinson In M behalf of tho stockholders of the West !; Qulncy company and the executors of the ffif J. D. Wood estate for the stockholders of 'M tho Thompson company. Representatives of the five companies affected met Tues- ijl day and ngreed upon the contract which : f, was drawn up and signed. The stock- i J? holders of tho consolidated company will tm meet within a few days to draft articles n and elect directors in order that the 'M stock may be Issuod and the extenslvo lin- S provemonts made provided for in the con- jr ifl tract- H The contract names tho Ontario Min- B lug oompany, tho Daly Mining csnpany nnd the Daly West Mining company as the parties of the first part, and tho H Thompson Mining company and the West mm Quincy Mining company as parties of the H second part. Tho West Quincy and the H Thompson companies own about 170 acres Ml of mining claims adjoining tho Daly SB West ropertv. Under the contract these two companies agree to consolidate their B title interests nnd organize a corporation with a capital stock of l,2a0.010 shares, of which the Thompson company Is to Um rccelvo sr,n.333 shares, and tho West Quincy 285.S0O shares, being share for share of the stock Issue of the company. Upon the organization of the company R the Ontario Is to receive "o.OOO shares of fM the capital stock, the Daly West &0.000 H shares and the Daly Mining company 75,- H 000 shares. HH Use of Workings. H The Daly West Mining company agrco3 (H to give the right to the consolidated com- Bf pany to all of its entries, drifts and tun- IBJ nels for drainage and for the transporla- H Hon of ores aiid other materials neccs- H sary to the mining operations. The Daly Mj West company reserves the right to re- mm eclve and remove any ores encountered H in its development so long as Its opera- HJ Hons do not Interfere with thoso of the new company. In the event of a dcslro M on the part of tho new company to uso tM the hoists and machinery of the Daly M West company It shall pay for the ex- Hj pense incurred. am The Daly West company agrees to ex- H tend at once Its tunnel on the 1200-foot IH level through the Grand Deposit mining H claim adjacent to the new company s h property. When the extension is made H the now company has the right to con- H tlnue the extension Into Its property and H also to extend any other drift or tunnel Bfl from the Daly West property, using tho H entries so mudo for the discharge of IS water as well us for the transportation of ore. H May Extend Tunnels. The Ontario Mining company and tho W Daly Mining company agree to give the K new company the right to use tho Ontario U drain tunnel No. 2, or any other tunnel M or drainage system, for the discharge of m water, the wntur to become the properly W of tho Ontario and Daly companies after m it has been discharged. The now com- 9 panv reserves the right to uso the water m while on its properly The new company agrees to pay tho Ontario and Daly com- panics for tho use of their machinery In hoisting the output from Us proporty, Tho Ontario nnd Daly companies reserve the right to extend the Ontario or any other tunnel or drift through tho prop- ertv of the new company to any adjacent a property that may lie owned by thoso KM companies in tho future. In the event that oro is developed by these companies m in adjacent properties the now company H Is given tho right to develop the veins m extending onto Its property. The new nl company, however, agrees not to mine H. within 100 feet of tho boundnry llne3 of B the adjoining companies, except In tho m event of encountering oro through the ex- m tension of tunnels and drifts. m Tho Daly West company agrees to pro- E vide dumping space on Its proncrty for M the new company whenovor avnilubje. B Kaeh company Is given tho right to use S the drifts and tunnels In tho. development H work of tho property. In tho event that IL. one conipnnv shall abandon any tunnel or drift any other company which Is party IN) to Hie contract has the right to keep the i tunnels or drifts In repair for Its own Ut " There Is an express provision In tho contract, that adjacent territory shall not m bo benolited by the drainage provisions M without the consult of thp Daly West, m thi Daly and tho Ontario Mining compa- HI |