TORONTO, Aug. 16 /CNW/ - New Dawn Mining Corp. (TSX:ND) ("New Dawn" or the "Company") reported it has entered into a loan facility agreement with Central African Gold Plc ("CAG"), the AIM quoted gold mining and exploration company, of which New Dawn is the 89% controlling shareholder.
New Dawn, under the terms of the loan facility agreement (the "Facility Agreement"), is to provide CAG with up to US$2.0 million to support CAG's gold mining operations in Zimbabwe.
The funds under the terms of the Facility Agreement will be made available to both Falcon Gold Zimbabwe Limited (84.7% owned by CAG) and to Olympus Gold Mines Limited (100% owned by CAG) to support their ongoing operational and working capital requirements.
The Facility Agreement does not have a maturity date and is repayable on demand.
About New Dawn Mining ...
New Dawn is a Zimbabwe-focused junior gold company currently expanding gold production at its Turk and Angelus Mines, exploring for gold, and identifying and pursuing other development projects in Zimbabwe.
New Dawn owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe that have the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. New Dawn owns the property outright on which these mines are located.
New Dawn is currently developing a revised and updated strategic business plan in light of its acquisition of a controlling interest in CAG, with a view towards reaching consolidated annualized gold production of 50,000 to 60,000 ounces within the next 18 to 24 months, increasing to 100,000 ounces within four to five years, and then ultimately to 200,000 to 250,000 ounces.
Additionally, the Company is reviewing and assessing CAG's extensive portfolio of exploration properties in Zimbabwe for future investment and development.
New Dawn's plans with respect to CAG's assets and operations will be developed and implemented taking into account New Dawn's ongoing discussions with and submissions to the Zimbabwe authorities.
About Central African Gold...
Central African Gold Plc is a gold mining company with a portfolio of production, development and exploration assets in Zimbabwe, where the Company operates through two subsidiaries, Falcon Gold Zimbabwe Limited (84.7% owned) and Olympus Gold Mines Limited (100% owned). Through these subsidiaries, CAG has four main gold properties, the Dalny, Old Nic, Golden Quarry and Camperdown mines, which are located in the highly prospective Kadoma, Shurugwi and Bulawayo gold regions in Zimbabwe.
For further information visit the Company's website at www.newdawnmining.com or the Company's filings on SEDAR at www.sedar.com.
The TSX has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
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 43-101.
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 - 2009. 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: For further information: Investor Relations Contact: Richard Buzbuzian, +1 416.585.7890; President and Chief Executive Officer: Ian R. Saunders, +1 416.585.7890; Visit us on the internet: http://www.newdawnmining.com or Email us at: email@example.com