New Dawn targets local investors

compliance increases.
The company has since said it will take advantage of the indigenisation programme to raise additional working capital resources to expand its portfolio of mining properties in the country.
Although New Dawn, which is a Canada-based but Zimbabwe-focused gold producer, is yet to comply with the indigenisation requirements, awaiting Government’s approval of its submissions, the company believes that improved compliance will help dissipate negative investor perceptions on the programme.
The company said that if it obtains Government approval for its proposed indigenisation plan it would arrange for equity-based transactions reflective of fair value with qualified indigenous investors.
“The elimination of the uncertainty with respect to indigenisation and the additional operating capital would likely be viewed positively by the market,” the company said.
Toronto Stock Exchange-listed New Dawn owns in whole the following: Casmyn Mining Zimbabwe (Private) Limited, Falcon Gold Zimbabwe Limited and Olympus Mines Limited.
The company says it is still engaging in confidential discussions with the Government, but expects any agreed upon arrangement to take “several months” to complete.
“The company expects that the implementation of any final indigenisation plan will require compliance with various legal, securities, tax and regulatory issues, which may take several months or more to accomplish,” said New Dawn.
In terms of its compliance plans for, New Dawn is looking to engage directly with indigenous sources of capital in Zimbabwe and to arrange a secondary listing of its common shares on the Zimbabwe Stock Exchange.
The company has also hinted at considering establishing employee share ownership schemes and community trusts.
Several mining companies including Zimbabwe Platinum Holdings and Mimosa, have launched community and employee ownership schemes in partial compliance of the indigenisation programme.
Meanwhile, the company reported a return to profit for the fourth quarter.
New Dawn posted fourth-quarter net income of US$2,6 million, compared to a net loss of US$1,1 million in the prior year quarter.
Revenue for the latest quarter rose to US$14,06 million from US$5,06 million in the comparable quarter last year.
In terms of operations, the company reported successful integration of the Central African Gold assets that it had previously acquired in June last year
The company says it raised US$7,4 million of new equity capital to support operations and fund the integration and development of the CAG assets as it seeks to reach its targeted production level of 100 000 ounces of gold yearly on an annualised basis by the end of 2014.