The company said this was part of broader plans to raise money to that effect.
“New Dawn's proposed Indigenisation Plan includes engaging directly with indigenous sources of capital in Zimbabwe. Additionally, the Company is considering a secondary listing of its common shares on the Zimbabwe Stock Exchange in order to provide a domestic platform for buying and selling New Dawn common shares by indigenous Zimbabweans (in addition to New Dawn maintaining its primary listing on the Toronto Stock Exchange),” the company stated.
“Furthermore, the Company is considering establishing employee and community share ownership schemes for the benefit of indigenous Zimbabweans, as well as various other structures that would result in broad-based participation by indigenous Zimbabweans. Included in the discussions with the Government of Zimbabwe is the concept of allocating equity to a sovereign wealth fund designated by the Government of Zimbabwe, to reflect the sovereign ownership of minerals in the ground, based on an appropriate valuation model.”
Last week, New Dawn revealed it had signed the Memorandum of Understanding with the Ministry of Youth Development, Indigenisation and Economic Empowerment through the National Indigenisation and Economic Empowerment Board, which established a broad-based framework for engagement regarding New Dawn’s indigenisation proposals.
It said while it welcomed the signing of MOU it was still concerned at the uncertainty around plans by government to command foreign-owned firms to cede a controlling stake to Zimbabweans.
“New Dawn believes that the signing of the MOU represents a significant step forward in the process of structuring and implementing an Indigenisation Plan that is acceptable to both the Zimbabwe Government and to the Company's key stakeholder groups. However, as there is currently substantial uncertainty surrounding the implementation of the Indigenisation laws and regulations, there can be no assurance that the Company will be successful in its efforts to comply with the Indigenisation laws and regulations under commercially viable terms and conditions,” New Dawn stated.
The developments follow the government ordering foreign-owned companies in the sector to present revised plans on indigenisation.
Post published in: Business