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 explored.
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 gold exploration.
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