Apple Fields metal deal unlikely to proceed

By NZPA

Monday 30th September 2002

Promoters of a United States-based metals venture with Christchurch company Apple Fields Ltd have been unable to produce as much metal as expected.

"There was a small amount, but not as much as we'd hoped," Apple Fields chairman Geoff Cone said.

An extended time for the contract has not been met, and the deal is unlikely to proceed any further.

"There is some hope on their side that they will be able to bring something forward but we are making no effort to move it along," Mr Cone said. "It seems it hasn't worked."

The directors were in the early stages of talking to two New Zealand people over other investment opportunities for the company.

Apple Fields is left with an interest-free loan of about $400,000 from Adelaide promoter company SABC Project Management, which it only has to repay when it is able to.

"It's a soft loan, and there's no pressure to repay it," Mr Cone said.

"We'll wait and see what happens."

Apple Fields spent part of last year, and most of this year, working on the project, which was to have produced gold, palladium, platinum and rhodium worth about $47,500 a month to the company.

Apple Fields shares reached a high of about 25c in hope of a successful venture, but have fallen back to 3.3c in recent weeks. They were untraded today.

The SABC interests were to have taken a controlling stake in Apple Fields. They are left now with a small holding, based on a proxy agreement with existing major shareholders Tom and Charles Kain.

Apple Fields subsidiaries are still involved in an appeal to the Privy Council in London, over the legal dispute on the old Styx Mill site near Belfast, now being developed by new owners as the Northwood subdivision.

Mr Cone said a hearing was expected early next year.

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