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Show New Company Is To Be Organized To Develop Mine All interests affecting the development de-velopment of ore' bodies discovered by A. E. MoGarry in the vicinity of the notel Horn Silver mine a.. Frisco, were consolidated last week and the way cleared for early action on a large scale by a company big enough and strong enough to probe Grampian mountain moun-tain to its core. The Frisco Lulu company, owner, and the Bonanza Mining company, optionee, at special stockholders' meetings surrendered surrender-ed all right, title and interst in the strategically located Lulu claim for stock in a new five million mil-lion share corporation to be formed form-ed in Utah. The corporation, t be known as San Francisco Mines, Inc., will also take over long term leases from the King David ana Horn Silver companies on nine and a fraction patented claims on Grampian hill in which McGarry made his remarkable strikes less than three months ago, together with a group of 1G unpatented claims north of the Horn Silver. "San Francisco" is the official name of the Beaver county district made famous by the Horn Silver. The new company of that name will issue nen-assessable shares oi 5 cents par value. The Frisco Lulu and Bonanza Mining companies com-panies each will receive 750,000 shares for their respective interests inter-ests in the Lulu; 1,500,000 shares will be given for assignment of the King David and Horn Silver leases; 250,000 shares paid for the Pomona gTOup; 500,000 shares will be subscribed for S25.000 cash to furnish working capital and 1,-250,000 1,-250,000 shares retained in the treasury. More than half the cash requii-ed requii-ed by the new company, it is announced, an-nounced, has been subscribed by California and Utah investors and considerable work has been done on the leased claims by A. E. McGarry Mc-Garry personally. Regarded as most important is the development in the "Swede" shaft on the Grampian Gram-pian claim of the King David. The entire shaft is said to be in higfl grade silver-lead ore and a tunnel, tun-nel, designed to tap the vein under the shaft, is nearing its objective. Another tunnel, starting on the Lulu claim, has but a short distance dis-tance to go to encounter the intersection inter-section of the two productive fissures fis-sures exposed near the surface. Ore also is being developed from the surface of two or more of the claima under lease.) The leas'es assigned to San Francisco Mines, Inc., run from two to five years and may be renewed for double the original periods. A 900-foot shaft and drifts on the Lulu claim, owned outright by 1 San Francisco Mines, Inc., will give contact hundreds of feet be-: be-: low the surface with the fissure 1 veins of Grampian within a comparatively com-paratively short distance and stopes similar to those opened in thq Horn Silver are confidently expected. ! Territory owned by the proposed propos-ed San Francisco Mines, Inc., in addition to the Lulu, consists of a group of unpatented claims about two miles north of the Horn Sil- ; ver and adjacent to the Quad-metals Quad-metals mine. There are 16 claims : in this group. Although no deep j (Continued on lait New Company Organized (Continued from first page) work has been done on them, outcrops out-crops of valuable ore are said to ' have been spotted by A. E. Mc-Garry Mc-Garry at several points. The Quadmetals, formerly the Beaver Carbonate, was one of the heavy producers of the district in the early days. j Disquietude caused by appre- I hension that the ownership of j Bonanza Mining shares would ! carry no interest in the McGarry 1 discoveries, resulting in a sharp j decline of the stock, has been set : at rest by the deal concluded last I I week, which gives the Bonanza an ; undivided minority stock interest . in all the leases and other aseeU of the new San Francisco Mines 1 company. |