TORONTO, Nov. 22, 2012 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or the "Company"), a junior gold company focused on developing and expanding its mining
assets and operations in Zimbabwe, announced that it has completed a
CDN$2,000,000 non-brokered private placement with a Zimbabwe-focused
fund managed by an international investment firm at CDN$1.00 per share
through the issuance of 2,000,000 shares.
The private placement did not include any warrants, and no finder's fees
or brokerage commissions were paid. The private placement shares are
subject to a four month hold period expiring on March 22, 2013.
The proceeds from the private placement will be utilized to fund the
acquisition of ordinary shares of the Company's 85% owned subsidiary in
Zimbabwe, Falcon Gold Zimbabwe Limited ("Falgold"), that it does not
already own, in accordance with the pending Falgold Scheme of
Arrangement (as described in previously issued news releases dated
September 25, 2012 and October 4, 2012), as well as related
professional fees and costs, with any remaining proceeds allocated for
general working capital purposes.
The acquisition of the Falgold shares by New Dawn is intended to
facilitate implementation of New Dawn's proposed Plan of Indigenisation
at the Zimbabwe subsidiary level.
The Falgold Scheme of Arrangement is conditional upon, and will not
become effective until, the satisfaction of the remaining conditions
precedent, which consist primarily of the receipt of necessary
regulatory approvals in Zimbabwe. The satisfaction of the conditions
precedent could take up to several months.
Upon the conclusion of this private placement, New Dawn had 45,612,383
common shares outstanding.
ABOUT NEW DAWN
New Dawn is a junior gold company listed on the Toronto Stock Exchange
that is focused on expanding its gold mining operations in Zimbabwe.
New Dawn owns 100% of the Turk and Angelus Mine, the Old Nic Mine and
the Camperdown Mine. In addition, New Dawn, through its Falgold
subsidiary, owns approximately 85% of the Dalny Mine, the Golden Quarry
Mine and the Venice Mine, and a portfolio of prospective exploration
acreage in Zimbabwe. The Venice Mine is not currently in production.
These six mines, five of which are currently operational, are operated
as three gold camps.
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
New Dawn, with its large gold resource, existing mine sites and
production facilities, and current exploration programs, is a growing
gold mining company in Zimbabwe, active in both gold production and
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.
Special Note Regarding Forward-Looking Statements: Certain statements included or incorporated by reference in this news
release, including information as to the future financial or operating
performance of the Company, its subsidiaries and its projects,
constitute forward-looking statements. The words "believe," "expect,"
"anticipate," "contemplate," "target," "plan," "intends," "continue,"
"budget," "estimate," "may," "schedule" and similar expressions
identify forward-looking statements. Forward-looking statements
include, among other things, statements regarding targets, estimates
and assumptions in respect of gold production and prices, operating
costs, operating results, capital expenditures, mineral reserves and
mineral resources, and anticipated grades and recovery rates.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by the
Company, are inherently subject to significant business, economic,
competitive, political and social uncertainties and contingencies.
Many factors could cause the Company's actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, the Company. Such factors
include, among others, risks relating to reserve and resource
estimates, gold prices, exploration, development, operating risks,
mining risks, political and foreign risk, indigenisation risk,
uninsurable risks, competition, environmental regulation and liability,
government regulation, currency fluctuations, and dependence on key
employees. See "Risk Factors" in the Company's Annual Information Form
- 2011. Due to risks and uncertainties, including the risks and
uncertainties identified above, actual events may differ materially
from current expectations. Investors are cautioned that
forward-looking statements are not guarantees of future performance
and, accordingly, investors are cautioned not to put undue reliance on
forward-looking statements due to the inherent uncertainty therein.
Forward-looking statements are made as of the date of this press
release and the Company disclaims any intent or obligation to update
publicly such forward-looking statements, whether as a result of new
information, future events or results or otherwise.
SOURCE: New Dawn Mining Corp.
For further information:
Investor Relations Contact: Richard Buzbuzian +1 416.585.7890
Visit New Dawn on the internet at: www.newdawnmining.com
E-mail New Dawn at: firstname.lastname@example.org