Business / Companies
NewDawn announces further developments Proposed Indigenisation Plan
02 Sep 2011 at 02:36hrs | Views
New Dawn Mining Corp announced that it has signed a Memorandum of Understanding with the Ministry of Youth Development, Indigenisation and Economic Empowerment through the National Indigenisation and Economic Empowerment Board, which establishes a broad-based framework for engagement with respect to the structuring and implementation of New Dawn's proposed Indigenisation Plan
NewDawn said the MOU is confidential.
The signing of the MOU is part of New Dawn's continuing efforts to comply with the Indigenisation and Empowerment laws, Statutory Instruments and General Notices, as promulgated by the Government of Zimbabwe, that require that mining companies operating in Zimbabwe adopt plans that result in 51% of their equity being owned by indigenous Zimbabweans. New Dawn's Zimbabwe operating subsidiaries, Casmyn Mining Zimbabwe (Private) Limited, Falcon Gold Zimbabwe Limited and Olympus Mines Limited, are all currently non-indigenous companies for purposes of the Indigenisation and Economic Empowerment Act and the related Regulations.
New Dawn believes that the signing of the MOU represents a significant step forward in the process of structuring and implementing an Indigenisation Plan that is acceptable to both the Zimbabwe Government and to the Company's key stakeholder groups. However, as there is currently substantial uncertainty surrounding the implementation of the Indigenisation laws and regulations, there can be no assurance that the Company will be successful in its efforts to comply with the Indigenisation laws and regulations under commercially viable terms and conditions.
New Dawn's proposed Indigenisation Plan includes engaging directly with indigenous sources of capital in Zimbabwe. Additionally, the Company is considering a secondary listing of its common shares on the Zimbabwe Stock Exchange in order to provide a domestic platform for buying and selling New Dawn common shares by indigenous Zimbabweans (in addition to New Dawn maintaining its primary listing on the Toronto Stock Exchange). Furthermore, the Company is considering establishing employee and community share ownership schemes for the benefit of indigenous Zimbabweans, as well as various other structures that would result in broad-based participation by indigenous Zimbabweans. Included in the discussions with the Government of Zimbabwe is the concept of allocating equity to a sovereign wealth fund designated by the Government of Zimbabwe, to reflect the sovereign ownership of minerals in the ground, based on an appropriate valuation model.
Through fostering investment by local indigenous parties in the Company at fair value, New Dawn is seeking to fulfill its obligations to comply with the Indigenisation laws and regulations, thereby increasing local ownership in the Company, while also contributing to the growth of the mining sector in Zimbabwe, and enhancing the ability of the Company to develop its portfolio of mining properties in Zimbabwe. The finalization and successful implementation of the Company's Indigenisation Plan is expected to provide New Dawn with additional working capital resources to support its efforts to increase annualized gold production to 100,000 ounces by the end of 2014.
New Dawn said it will continue to engage in confidential discussions with the Government of Zimbabwe, through the Ministry and NIEEB, with respect to the structure and implementation of the Company's final Indigenisation Implementation Plan. The Company will provide further information to shareholders when such discussions are finalized, or when developments otherwise warrant.
New Dawn is a Zimbabwe-focused junior gold company that is currently implementing its plan to expand its consolidated annualized gold production to 38,000 to 40,000 ounces by the end of 2011, and then to an expected 50,000 to 60,000 ounces by the end of 2012. New Dawn targets further increasing annualized gold production to 100,000 ounces by the end of 2014.
New Dawn owns 100% of the Turk/Angelus Mine Complex, the Old Nic Mine and the Camperdown Project. In addition, New Dawn has an approximately 85% equity interest in the Dalny, Golden Quarry and Venice Mines, and a large portfolio of prospective exploration acreage in Zimbabwe. These six mines, four of which are now operational, are divided into three significant gold camps, and the Company is in the process of expanding production at these sites. All properties and exploration projects are located in Zimbabwe.
In addition to gold production, New Dawn is also actively exploring on highly prospective ground employing modern exploration techniques and deploying capital in Zimbabwe, a country that is proven to be geologically rich, highly prospective, and significantly under explored.
New Dawn, with its large gold resource, existing production facilities and current exploration efforts, is well on the path to becoming a mid-tier gold mining company in Zimbabwe, active in both gold production and gold exploration.
NewDawn said the MOU is confidential.
The signing of the MOU is part of New Dawn's continuing efforts to comply with the Indigenisation and Empowerment laws, Statutory Instruments and General Notices, as promulgated by the Government of Zimbabwe, that require that mining companies operating in Zimbabwe adopt plans that result in 51% of their equity being owned by indigenous Zimbabweans. New Dawn's Zimbabwe operating subsidiaries, Casmyn Mining Zimbabwe (Private) Limited, Falcon Gold Zimbabwe Limited and Olympus Mines Limited, are all currently non-indigenous companies for purposes of the Indigenisation and Economic Empowerment Act and the related Regulations.
New Dawn believes that the signing of the MOU represents a significant step forward in the process of structuring and implementing an Indigenisation Plan that is acceptable to both the Zimbabwe Government and to the Company's key stakeholder groups. However, as there is currently substantial uncertainty surrounding the implementation of the Indigenisation laws and regulations, there can be no assurance that the Company will be successful in its efforts to comply with the Indigenisation laws and regulations under commercially viable terms and conditions.
New Dawn's proposed Indigenisation Plan includes engaging directly with indigenous sources of capital in Zimbabwe. Additionally, the Company is considering a secondary listing of its common shares on the Zimbabwe Stock Exchange in order to provide a domestic platform for buying and selling New Dawn common shares by indigenous Zimbabweans (in addition to New Dawn maintaining its primary listing on the Toronto Stock Exchange). Furthermore, the Company is considering establishing employee and community share ownership schemes for the benefit of indigenous Zimbabweans, as well as various other structures that would result in broad-based participation by indigenous Zimbabweans. Included in the discussions with the Government of Zimbabwe is the concept of allocating equity to a sovereign wealth fund designated by the Government of Zimbabwe, to reflect the sovereign ownership of minerals in the ground, based on an appropriate valuation model.
New Dawn said it will continue to engage in confidential discussions with the Government of Zimbabwe, through the Ministry and NIEEB, with respect to the structure and implementation of the Company's final Indigenisation Implementation Plan. The Company will provide further information to shareholders when such discussions are finalized, or when developments otherwise warrant.
New Dawn is a Zimbabwe-focused junior gold company that is currently implementing its plan to expand its consolidated annualized gold production to 38,000 to 40,000 ounces by the end of 2011, and then to an expected 50,000 to 60,000 ounces by the end of 2012. New Dawn targets further increasing annualized gold production to 100,000 ounces by the end of 2014.
New Dawn owns 100% of the Turk/Angelus Mine Complex, the Old Nic Mine and the Camperdown Project. In addition, New Dawn has an approximately 85% equity interest in the Dalny, Golden Quarry and Venice Mines, and a large portfolio of prospective exploration acreage in Zimbabwe. These six mines, four of which are now operational, are divided into three significant gold camps, and the Company is in the process of expanding production at these sites. All properties and exploration projects are located in Zimbabwe.
In addition to gold production, New Dawn is also actively exploring on highly prospective ground employing modern exploration techniques and deploying capital in Zimbabwe, a country that is proven to be geologically rich, highly prospective, and significantly under explored.
New Dawn, with its large gold resource, existing production facilities and current exploration efforts, is well on the path to becoming a mid-tier gold mining company in Zimbabwe, active in both gold production and gold exploration.
Source - Byo24News
