adminIn a statement, the Canada-based mining concern said additional access to capital was expected to come from potential funding by local investor groups.
Under the Indigenisation and Economic Empowerment Act foreign entities whose annual turnover exceeds $500 000 are required to cede 51 percent shares to indigenous Zimbabweans.
“The finalisation and implementation of the company’s plan of indigenisation and the potential funding from indigenous investor groups are expected to provide New Dawn with access to additional capital resources to support its efforts to increase sustainable gold production from its properties in Zimbabwe, thus expanding its employee base and contributing to the overall growth and development of the Zimbabwe economy,” said the group, which has invested more than $13 million in its local operations during the financial year ending 30 September 2012.
It is also hoped that the implementation of the company’s indigenisation plan would to some extent alleviate investor perceptions of the political risk of operating in Zimbabwe and thus making external capital resources more readily accessible.
“With access to adequate investment capital to support the company’s efforts to increase sustainable gold production from its properties in Zimbabwe, the company intends to expand its employee base and contribute to the growth and development of the Zimbabwe economy.”
Casmyn Mining Zimbabwe, Falcon Gold Zimbabwe Limited and Olympus Gold Mines Limited are New Dawn’s operating subsidiaries in the country.
The subsidiaries are yet to comply with the Indigenisation and Economic Empowerment Act.
New Dawn said the company’s initial plan of indigenisation was timely filed with the Ministry of Youth Development, Indigenisation and Economic Empowerment in April 2011.
“Since then, the company has been in confidential discussions and meetings with the ministry and the National Indigenisation and Economic Empowerment Board addressing not only the components of the company’s plan of indigenisation but also its proposed participants,”said the mining firm.
Its indigenisation plan consists of two key components, the first of which contemplates the investment into New Dawn by independent indigenous investor groups, together with the participation of the National Indigenisation and Economic Empowerment Fund (NIEEF).
The second component provides for the transfer of equity interests in each of the company’s operating subsidiaries in the country to Community Share Ownership Trusts and Employee Share Ownership Schemes of 10 percent and 5 percent respectively.
Online Reporter