Falgold deal awaits regulatory approvals

shareholders.
The Toronto Stock Exchange-listed gold producer owns 85 percent of Falgold Mine, but is seeking to wholly own the mine as it rationalises its group and capital structure.
Falgold consists of the Dalny Mine, the Golden Quarry Mine and the Venice Mine (currently in mothballs),
In a cautionary statement last week, Falgold warned shareholders that the process was still work in progress despite the transaction receiving approval from the High Court of Zimbabwe in recent weeks.
“Shareholders are advised that there are two conditions precedent, including regulatory approvals, which still have to be fulfilled before the scheme can be fully implemented.”
Completion of the process will result in the discontinuance of Falgold shares trading on the Zimbabwe Stock Exchange, instead the acquired shares will become part of New Dawn’s common shares and as such be traded on the TSX.
Said Falgold: “Falgold shares will continue to trade on the Zimbabwe Stock Exchange up to the date that the conditions precedent have been fulfilled.
“Shareholders will be advised of that occurrence, and will have a period of seven days from the effective date of the scheme to lodge their election to receive shares or cash consideration as provided in the scheme.”
Having received shareholder and High Court approvals, it should be that the transaction is now conditional upon acceptance by the Toronto Stock Exchange and exchange control approval by the Reserve Bank of Zimbabwe, and approval of the transaction by the board of directors of New Dawn, during which time the shares of Falgold will continue to trade on the Zimbabwe Stock Exchange.
New Dawn also owns 100 percent of the Turk and Angelus Mine, the Old Nic Mine and the Camperdown Mine and a portfolio of prospective exploration acreage in Zimbabwe.
The company recently reported record gold production of 37 623 ounces for the year to September 30, 2012.
As a result, the Toronto Stock Exchange-listed company’s revenues also increased by 61,8 percent to US$61,9 million compared to the US$38,3 million generated last year. For the 2013 fiscal year, New Dawn has projected a 41 percent bump in gold output to 53 000 ounces.