NEW Dawn Mining has completed a US$2, 010 million non-brokered private placement with a Zimbabwe-focused fund managed by an international investment firm to finance the acquisition of ordinary shares in Falgold, currently owned by minorities, and to facilitate the implementation of the company’s proposed indigenisation plan.
Report by Staff Writer
The company said the private placement was transacted at CDN$1 99 US cents per share and 2 million shares were issued.
The group said the private placement did not include any warrants, finder’s fees or brokerage commissions.
The issued shares are also subject to a four-month hold period that expires on March 22, 2013.
New Dawn Mining is a Toronto Stock Exchange-listed gold company with operations in Zimbabwe through various subsidiaries, including Falcon Gold Zimbabwe Limited, Turk and Angelus mine, the Old Nic mine and Camperdown mine.
Proceeds from the private placement would fund the acquisition of ordinary shares of the 85% stake in Falgold and also cover related professional fees and costs, while the remaining proceeds would be allocated towards general working capital.
The group said the acquisition of Falgold shares would see the full implementation of the proposed indigenisation plan at the Zimbabwe subsidiary level.
The Falgold Scheme would only be effective upon the receipt of necessary regulatory approvals in Zimbabwe, although all other conditions precedent, including regulatory approvals in Canada, have been satisfied.
The High Court of Zimbabwe last month issued an order sanctioning the scheme while the Zimbabwe Stock Exchange (ZSE) has also approved the termination of the listing of Falgold shares on the local bourse.
“Following successful conclusion of the scheme and delisting of the ordinary shares of Falgold and fulfillment of the conditions precedent, the ZSE has granted approval for the listing of the common shares of New Dawn on the ZSE,” said the company statement.
“New Dawn’s common shares will continue to trade on the Toronto Stock Exchange.”
The company said the Toronto Stock Exchange granted its conditional approval for the listing of New Dawn’s common shares issuable pursuant to the scheme on the Toronto Stock Exchange, with a deadline for the closing of the transaction set for February 7, 2013.