Mining acquisition

BULAWAYO - TSX-listed New Dawn Mining has acquired an 89 per cent stake in the Aim-listed Central African Gold (CAG) in a move that would see the company consolidate its operations in the country.

However, the board of directors of CAG have said they were not consulted in the process and are now seeking an audience with New Dawn after the deal went through.

In a statement, New Dawn announced hat it had acquired 89 per cent of CAG.

CAG has gold-mining assets in Zimbabwe through an 87,4 per cent stake bought in Falcon Gold and a 100 per cent interest in Olympus Gold Mines.

New Dawn said the new acquisition would increase the company’s gold resource base and mining capacity in the country to support a consolidated yearly production rate of 50 000 oz of gold to 60 000 oz of gold within the next 18 to 24 months.

“We plan to seek representation and control of CAG’s board of directors, after which we will launch a strategic review of the firm’s assets and operations,” New Dawn said after the acquisition.

CAG confirmed having received a letter requesting the appointment of two directors, representing New Dawn, to the CAG board. New Dawn said it would look into CAG’s short- and long-term working capital requirements to fund the development and operation of the company’s assets, and could address funding needs through a combination of internal cash flow and new debt and equity.

Post published in: Economy

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