New Dawn ups CAG stake to 96,4 percent

Central African Gold by another 7,7 percent to 96,4 percent.
CAG owns substantial gold mining assets and operations in Zimbabwe, as well as extensive prospective acreage.
New Dawn gained a controlling 88,7 percent stake CAG in June last year.
The development comes as the Government recently published new regulations in respect of foreign mining companies’ compliance with the country’s indigenisation law.
The new minimum requirements for mining firms that were gazetted on March 25 stipulate that each non-indigenous mining company must submit an indigenisation plan within 45 days.
The company has, however, said it is still currently in discussions with the Government as regards plans to dilute its stake in Zimbabwe-based entities.
“New Dawn is continuing to discuss the outlines of its indigenisation plan with the Government of Zimbabwe, the objective of which is the design and implementation of a plan that both complies with the relevant regulations and allows the company to pursue its goal of becoming a leading mid-tier gold mining company in Zimbabwe,” said the company.
New Dawn is a Zimbabwe-focused gold company, which wholly owns the Turk/Angelus mine complex in Zimbabwe and the majority stake in CAG properties.
Meanwhile, New Dawn registered record quarterly consolidated gold sales of US$7,3 million for the quarter ended March 31, compared to US$3,801 million in the comparable quarter last year.
The average selling price per ounce of gold is US$1 386.
Total sales were almost twice US$3,8 million achieved during the same quarter last year at an average selling price US$1 109 per ounce.
Consolidated gold sales for the latest quarter increased by 14.4 percent over the US$6,4 million for the December quarter.
New Dawn reports that at March 2011 month-end, an additional 1 876 ounces of gold awaited export documentation for sale in South Africa, and will be included in the April 2011 sales.
In terms of production, the company reported consolidated gold production of 6 226 ounces for this quarter compared to 3 395 ounces of gold produced for last year’s quarter, an increase of 83,4 percent.