adminBusiness Reporter
Zimbabwe focused New Dawn Mining is set to delist from the Toronto Stock Exchange next month and register its operations in the tax haven of Cayman Islands. In a statement, the company said it had applied for voluntary delisting from the TSX. New Dawn announced last month plans to delist as part of plans to cut costs.
It said the proposal to delist would be approved at a special meeting of shareholders on 19 November.
“The Company has also applied to voluntarily delist its common shares from the Toronto Stock Exchange, and expects the delisting to be effective on 20 November, 2013,” said the statement.
New Dawn operates a number of gold mines in Zimbabwe which include Turk and Angelus, Old Nic, Camperdown and Dalny. Dalny is currently under care and maintenance after operations were suspended in August due to rising debts.
The company believes that operating as a private company was more conducive to the successful implementation of a major restructuring that may be necessary to stabilise the company’s operations and attempt to establish a viable capital structure to allow for the preservation and future development of the Company’s assets in Zimbabwe.
Under the delisting proposals, minority shareholder would be bought out, leaving large mostly institutional investors.
Online Reporter
derick.khumalo