TORONTO, Oct. 11, 2013 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or the "Company"), a junior gold mining company operating
in Zimbabwe, announced that the Zimbabwe Minister of Youth Development,
Indigenisation and Economic Empowerment has approved the Company's
previously filed Plan of Indigenisation (the "Plan"). This approval,
which covers both the basic form and structure of the Plan and the
qualified indigenous investor participants in the Plan, authorises the
implementation of the Plan and contains certain stipulations related to
timing and process.
As previously announced, the Company's Plan consists of the following
two key components:
The acquisition of equity interests in New Dawn by four independent
indigenous investor groups in Zimbabwe, as well as the participation by
the National Indigenisation and Economic Empowerment Fund ("NIEEF").
These transactions are not expected to initially provide significant
capital to the Company.
The transfer, for no monetary consideration, of equity interests in each
of the Company's operating subsidiaries in Zimbabwe to Community Share
Ownership Trusts and Employee Share Ownership Schemes amounting to 10%
and 5%, respectively.
To take account of the dilution of New Dawn's interests in its Zimbabwe
subsidiaries by the respective allocations of equity interests to the
community and employee groups, in order to meet the additional
effective 36% equity ownership in those subsidiaries to be acquired by
indigenous Zimbabweans through investment in New Dawn, the aggregate
equity interest in New Dawn that would ultimately be acquired by
indigenous investor groups and NIEEF would comprise approximately 42%.
The implementation of the Plan will require a number of steps and
procedures, including amending the Company's capital structure to
provide for the specific equity interests contemplated under the Plan,
and eliminating the current minority interests in the Company's
Zimbabwe subsidiary, Falcon Gold Zimbabwe Ltd.
The equity interests in the Company's Zimbabwe operating subsidiaries to
be transferred to the community and employee groups are expected to
provide a direct and broad-based participation in New Dawn's Zimbabwe
mining operations by indigenous Zimbabweans.
The Company will continue to advise shareholders as to the status of
this matter as significant developments occur. In the meantime, the
Company is continuing its process for the share consolidation and
re-incorporation in the Cayman Islands jurisdiction, as well as
considering delisting its common shares from the Toronto Stock
Exchange, all as previously disclosed.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.
Additional information on New Dawn and the matters discussed herein can
be obtained on the Company's web-site at www.newdawnmining.com or in the Company's filings on SEDAR at www.sedar.com.
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, results and
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 and
operating risks, political and foreign risk, uninsurable risks,
competition, limited mining operations, production risks, environmental
regulation and liability, government regulation, currency fluctuations,
recent losses and write-downs and dependence on key employees. See
"Risk Factors" in the Company's Management's Discussion and Analysis -
2012. 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:
New Dawn investor relations can be contacted as follows:
Telephone: +1 416.585.7890 x 230
Visit New Dawn on the internet: www.newdawnmining.com