Kyogle counts on backing for factory
THE NORTHERN Rivers' big investors have a two-week window of opportunity to get Kyogle back on its feet.
Plans to build a particle board factory, which would employ most of the readytrained workforce of Norply, hinge on finding around 20 businessmen willing to invest $1 million each in the project.
Norply, Kyogle's largest employer, burnt down in September.
The particle board factory instigator Peter Wintour believes the Northern Rivers could easily produce the investors needed.
He has his eye on a $26 million mill for sale in China which would pave the way for the factory, Phoenix Board.
But other parties are also bidding for the mill and the owners want to make a sale within a fortnight.
Mr Wintour yesterday said the first option for funding the venture, separate to Norply, was to have a priority limited company with fewer than 20 shareholders.
Already, around $4 million was secured.
The second option was to have 20-50 smaller investors and, as a final resort, the company could be listed on the Newcastle Stock Exchange and opened to all investors.
"We are looking at preparing a prospectus but that comes with a price tag of up to $80,000 and it is another $100,000 to list the company," he said.
The Phoenix team sees the new venture as complementary to a rebuilt Norply, which may take two years.
Asked if Norply shareholders could provide investment funds, Mr Wintour said: "Getting Norply back up and running is a major task in itself and further pressure should not be put on Norply inves- tors."