|New Dawn plans Falcon takeover|
|Friday, 03 August 2012 00:00|
NEW Dawn Mining Corporation plans to buy out minority shareholders in Falgold Limited and acquire the company’s listing on the Zimbabwe Stock Exchange. The Toronto Stock Exchange-listed firm, the parent company of Falgold, will propose a scheme of arrangement under which minority shareholders would receive shares in New Dawn in return for the shares presently held in Falgold.
Alternatively, there would be payment in cash, sources familiar with the deal said.
No exact dates have been given as to when Falgold will delist and New Dawn subsequently listed.
For New Dawn that would be a secondary listing. The transaction will be subject to approval by the regulators.
Last week, Falgold issued a cautionary statement advising shareholders that negotiations with material impact on the value of the company’s shares were underway.
New Dawn is a mining company currently focused on expanding its gold mining operations in Zimbabwe.
New Dawn owns, through Falgold, 100 percent of three mines: Turk and Angelus, the Old Nic and the Camperdown.
New Dawn also owns about 85 percent of Dalny, Golden Quarry and Venice mines and a portfolio of prospective exploration land in Zimbabwe.
The mines, five of which are currently operational, are divided into three significant gold camps, and have a combined milling capacity of 2 000 tonnes per day.
Falcon announced in June that it was seeking US$10 million to fund expansion projects as the group targets output growth.
The projects will see the restart of the Venice Mine and increasing capacity at Golden Quarry and Dalny mines.
Falcon Gold, the Bulawayo-based company, anticipates that the future production growth in the company will come from improved output and grades from underground at Dalny Mine, the restart of Venice Mine and additional capacity being installed at Golden Quarry Mine.