|Object Name||Clipping, Newspaper|
TITLE: Historic Almaden Mines to Reopen On a Large Scale SUBTITLE: $500,000 Eastern Syndicate Leases Quicksilver Producer; To Employ Hundreds. AUTHOR: By G. H. McMURRY PUBLISHER: San Jose Mercury March 27, 1940
New Almaden mines, historic quicksilver producer in the hills 13 miles southwest of San Jose, will reopen in large war-encouraged production May 1 under management of a $500,000 Philadelphia syndicate, it was revealed here late yesterday.
Reopening of the 114-year-old mining property - oldest mine in California - was disclosed with the filing of an option and conditional lease with County Recorder Charles Payne yesterday by Manager George B. Myren of the California Pacific Title & Trust Co. of San Jose, who cleared title for the 4765 acres involved in negotiations extending back over the last half-year -ever since the European war started.
TO EMPLOY HUNDREDS.
The large-scale operations will employ "several hundred" men, say local sources who have been associated with the negotiations. No indications were available from Philadelphia as to where on the large property the operations would begin, but those who are familiar with the Almaden mining conditions believe that it will involve open-cutting of old Mine hill, with power scrapers, and low-grade ore refinement with a new flotation process developed by Dupont de Nemours corporation.
F. Eugene Newbold, banker and financier of Philadelphia, who heads W. H. Newbold's Son & Co. of that city, is president of the new company, New Almaden, Inc., whose paid-up capitalization is revealed as $500,000, according to the lease filed here.
COVERS WIDE TERRITORY.
The lease is from Mrs. Mary Lord Sexton and William Lord Sexton, respectively, of Camden and Belfast, Me., children of the late George Hobart Sexton, who acquired the Almaden property in 1917 and operated it through the World war years until his death in 1927.
Newbold, who receives a $25,000 commission from future earnings for his part in negotiating the 35-year lease of the historic property, is listed as president of the New Almaden, Inc., which will hold mining rights to the entire Sexton holdings, covering the Capitancillos range from the old Hacienda settlement in Alamitos canyon to the old Senator workings three miles to the north.
The syndicate must pay the Sextons $20,241.70 in cash when the lease is completed before May 1, from which date it must pay them 10 per cent "cash or kind" in gross quicksilver production monthly, with payments to exceed a minimum of $18,000 annually and $25,000 annually during the last five years of the lease.
HIGH WAR PRICES.
Delay in completing the lease until May 1 was believed here to be a precaution to enable the company to commence immediate operations when it is signed, in view of the payments involved. The new venture would have the advantage of selling quicksilver on a war market in which yesterday's quotation was $180 in San Francisco and $239 in London for each 76«-pound flask.
The lease transfers existing Sexton tenants-at-will leases to the new company. These involve the Chequin & Purinton salvage operations in the old workings under Mine hill during the past four or five years and the deep-mining operations of P. S. "Jimmy" Schneider in the San Mateo mine area, and the Enriquita mine salvage operations, both on the west (or Guadalupe) side of the Capitancillos range.
The lease presages the first large-scale operations at the old property since Sexton operations from 1917 to 1925, which were chiefly located at the Senator mine three miles north of what tourists call Almaden. Because the 1917 Herreschoff fur naces at the Senator are not involved in the new lease, mining men here presumed that the com pany plans surface cutting operations in the old Mine Hill region just back of the saddle where the CCC camp operated from 1933 to last September.
|Cataloged by||Boudreault, Art|