TORONTO, Feb. 5 /CNW/ - New Dawn Mining Corp. (TSX:ND) ("New Dawn" or the
"Company") commented on the recent Monetary Policy Statement ("MPS") released
by the Governor of the Reserve Bank of Zimbabwe ("RBZ") and the encouraging
impact that the new policy statement potentially has to New Dawn's mining
operations in Zimbabwe.
In general, the proposed changes detailed in the new MPS are far reaching
and are expected to have a significant and positive impact on New Dawn's
ability to potentially resume its Zimbabwe gold mining operations in the near
Among other changes, the new MPS contemplates specific improvements for
gold producers that are designed to counter the factors that contributed to
the Zimbabwe gold sector decline over the last 18 months. These factors also
forced the Company to suspend gold production at its Turk Mine and place it on
temporary "care and maintenance" effective October 3, 2008.
One of the most significant changes in the new MPS is that gold producers
will, after receipt of a Gold Export Permit, be in control of their gold
sales; gold companies will be able to produce and sell gold and be reasonably
assured that they will be paid for their bullion within normal trade terms, as
such gold production may be marketed outside of the control of the RBZ.
Additionally, under the new MPS, gold producers will now retain 92.5% of
their sales in foreign exchange (up from 85%). These funds may be held
indefinitely, as compared to the previous requirement to convert any remaining
foreign exchange to local Zimbabwe currency within thirty days of receipt.
The ability to freely market gold production, will also allow gold
producers access to certain financial instruments such as gold loans that
would then be collaterised by their own physical gold inventory, thus making
access to operating capital and new project financing significantly easier.
Under the new MPS, all current outstanding receivables owed to gold
producers, such as New Dawn, will be converted into a "Special Tradable
Gold-Back Foreign Exchange Bond", which will have a term of 12 months and will
pay interest at 8% per annum upon maturity. The interest owed is to be accrued
from the time that the money has been outstanding. The RBZ has stated that it
will honor the full principal plus interest on maturity. When implemented, New
Dawn expects to receive the new bond in the approximate amount of $2,389,970,
representing the balance of monies currently owed by the RBZ to New Dawn.
Furthermore, the RBZ has laid out certain measures to significantly
de-regulate Zimbabwe's exchange control policies. These measures include the
ability of gold producers to pay for goods and services offshore, as well as
all genuine external debts, dividends, etc without prior Exchange Control
approval. This step is expected to make the flow of operational capital more
efficient, and allow for the unfettered transfer of operational proceeds.
As a result of the items discussed above, management has commenced a
review of the proposals contained in the new MPS in order to assess the likely
impact on the operating environment in Zimbabwe, with a mind to determining
the feasibility of resuming mining operations at the Turk/Angelus Mines and
processing facility in the near term.
About New Dawn ...
The Company is engaged in the production of gold and related activities,
including exploration, development, mining and processing in the Southern
African Development Community ("SADC"). The Company's principal assets are:
the producing, but currently on care and maintenance, Turk Mine in Zimbabwe;
the advanced exploration project Angelus Mine in Zimbabwe; and the advanced
exploration project Blue Dot Property in South Africa. The Company has 2
production facilities; one in Zimbabwe that is currently capable of processing
up to 400 tonnes per day or 12,000 tonnes per month, and a facility in South
Africa that is rated at 180 tonnes per day or 5,500 tonnes per month. New Dawn
also maintains a highly experienced work force of over 900 people in Zimbabwe
and South Africa. The Company has additional assets that form a portfolio of
exploration properties, and include the Consolidated Bubi Gold Fields,
consolidated Midlands Gold Fields and consolidated Shurugwi Gold Fields
properties, all of which are located in Zimbabwe.
New Dawn has a significant resource base (including inferred) that is in
excess of 1.328 million ounces of gold at a grade between 4 and 5 g/ton at a
2.45 g/t cut-off grade based on US$875/oz gold, all NI 43-101 compliant. With
the goal of becoming a meaningful gold producer in the region, New Dawn is
well-established in southern Africa, owning both mines and processing
facilities, as well as substantial developmental acreage in Zimbabwe.
The contents of this news release, were supervised and reviewed by Ian R.
Saunders, B.Sc., who is President, Chief Executive Officer, and a Director of
New Dawn Mining Corp., and who is a Qualified Person within the meaning of NI
The TSX has not reviewed and does not accept responsibility for the
adequacy or the accuracy of this release. Statements in this press release
regarding the Company's business which are not historical facts are
"forward-looking statements" that involve risks and uncertainties, such as
estimates and statements that describe the Company's future plans, objectives
or goals, including words to the effect that the Company or management expects
a stated condition or result to occur. Since forward-looking statements
address future events and conditions, by their very nature, they involve
inherent risks and uncertainties. Actual results in each case could differ
materially from those currently anticipated in such statements.
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 Annual Information Form dated December 22,
2008. 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 news 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, unless required by
applicable law or regulation.
For further information:
For further information: Mr. Ian R Saunders, President & CEO, New Dawn
Mining Corp., Email - email@example.com; INVESTOR RLEATIONS CONTACT:
Richard Buzbuzian, Investor Relations, New Dawn Mining Corp., 116 Simcoe
Street, Suite 301, Toronto, Ontario, Canada, M5H 4E2, Tel - (416) 585-7890,
Email - firstname.lastname@example.org