FINANCE Western Get-Together Proposal to merge U. S. Potash and Pacifie Coast Borax rests on stockholder a p p r o v a l M ERGER TALKS beween U n i t e d States Potash a n d Pacific Coast Borax h a v e reached t h e agreeing stage. Directors of t h e two firms have a p p r o v e d a plan to consolidate their operations. T h e resulting company will b e called United States Borax & Chemical Corp. if the move wins stockholder approval later this month. Pacific Coast Borax, major U. S. borax producer, is a subsidiary of London-based Borax, L t d . (Borax also controls about 319fc of U. S. Potash's outstanding shares). A n $ 1 8 million improvement and expansion program now under way will change its California operations from underground to open pit mining. If the merger proposal is carried through, holders of 725,000 shares of U, S. Potash common will b e offered one share of 4 x / 2 % preferred stock and five shares of common stock i n the new firm for e a c h five shares they now have. Reinaining Potash shares, owned by Borax, will be canceled. Capitalization of U . S. Borax & Chemical will consist of $14.5 million
MINERALS
of preferred stock and 4,175,000 shares of common. All of t h e preferred a n d 725,000 shares of common will go to present Potash stockholders; the Borax interests will own 3,100,000 common shares. An additional 350,000 shares of common will b e held b y a group of private American investors headed b y Lazard Frères & Co. i n N e w York.
Low-Grade Ore Pay Lode? Strategic Materials is banking on new metallurgical processes to win it profits W H E N
STOCKHOLDERS
& 3O0
250
2 5 0
SEC
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Ί75.7 150
S E C Composite Index
148.6
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NONFERROUS
300
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of
Materials Corp. take a look at their company d u r i n g this week's annual meeting, they will note t h a t operations last year showed a $ 3 2 , 8 9 5 deficit a n d that deferred charges of $2.7 million (mostly for exploring a n d developing still unprofitable mining claims) a d d e d u p to t h e largest single "asset" on t h e vear-end b a l a n c e sheet.
Nevertheless, says c o m p a n y m a n a g e ment, t h e corporation improved its position considerably during 1955. Earnings, it adds, have h>een postponed in t h e hope of greater future profits. Strategic is enthusiastic; because, like many a young venturesome concern, it thinks it has an a c e in the hole. Its hole card: rights to a n u m b e r of metallurgical and chemical processes worked out b y electroohemist Marvin J. U d y for recovering metals a n d minerals from low-grade o r e s a n d waste materials. Strategic was organized five years ago w i t h an initial capitalization of $300,000 and h e a d q u a r t e r s in Buffalo, Ν. Υ. Through its wholly owned Canadian subsidiary, Stzratmat, Ltd., it controls or has an interest in manganese ore deposits in N e w Urunswiçk, glass sand supplies i n Q u e b e c , feldspar operations i n N e w H a m p s h i r e a n d Quebec, two Ontario u r a n i u m ventures, and mining claims cohering potential nickel-copper zones a n d titaniferous magnetite deposits i n northwestern Ontario. • Upgrading M a n g a n e s e . As t h e major achievement of 1955, however, Strategic points to i i s metallurgical activities. T o d e v e l o p a method of profitably producing ferromanganese from its low-grade m a n g a n e s e ores, Stratmat last year set luj? Strategic-Udy Metallurgical & C h e m i c a l Processes, L t d . (80% o w n e d b y Stratmat, 2 0 % by U d y and associates). Last fall Strategic privately sold $3.4 million of capital stock. P a r t of t h e proceeds are being used b y Strategic-Udy to build a $1.5 million p r o t o t y p e plant at
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