New Dawn to buy out minorities in Falgold

hold approximately 15,3 percent of shares in the gold producer.
Yesterday, New Dawn said the process would require approvals from the courts as well as from the minority shareholders.
“The company has initiated a formal process in Zimbabwe, which involves a legal proceeding requiring court approval and approval of the non-controlling shareholders of Falgold, to acquire the approximately 15,3 percent of the issued shares of Falgold that the company does not currently own.
“This process includes either a conversion of the shares held by the non-controlling shareholders of Falgold into common shares of New Dawn or the acquisition of the Falgold shares by New Dawn for cash.”
But the group remains guarded about the successful implementation of the process.
“However, as all of the terms and conditions of this proposed transaction have not yet been finalised, there can be no assurance that this process will proceed and culminate in a completed transaction,” said New Dawn.
The Toronto Stock Exchange-listed company carried out a similar process between 2010 and 2011, when it bought out non-controlling shareholders of its subsidiary, Central African Gold (CAG).
As at February this year, New Dawn had increased its interest in CAG to approximately 95,2 percent up from 89,9 percent in December 2010 and 88,7 percent previously.
New Dawn owns 100 percent of the Turk and Angelus Mine, the Old Nic Mine and the Camperdown Mine.
In addition, New Dawn — through Falgold — owns approximately 85 percent of the Dalny and  the Golden Quarry mines, the Venice mine which is not in operation), and a portfolio of prospective exploration acreage in Zimbabwe.
Meanwhile, in the quarter ended June 30, the company’s gold output stood at 9 536 ounces compared to                6 841 ounces for the similar period last year, a 39,4 percent increase. The current quarter gold production figure was also a 9,2 percent increase from the March quarter figure of 8 736 ounces.
The gold sales for the period under review stood at US$15,1 million compared with US$9,7 million for the similar quarter last year — a 54,8 percent increase.
Average sales price per ounce of gold sold during the quarter was US$1 608, which was better than the US$1 516 recorded for the same period last year. Earnings per share for the quarter just ended stood at US$0,01.
New Dawn says it is still in the process of implementing its indigenisation compliance plan, which so far includes non-binding term sheets with three indigenous investor groups.
“Due to various multi-jurisdictional legal, securities, tax and regulatory issues, the company expects that the implementation of its plan of indigenisation may take several months or more to accomplish,” said New Dawn.