HARARE - New Dawn Mining Corporation (New Dawn) has raised over $2 million through a private placement.

The gold producer intends to spend the money on buying ordinary shares in its Zimbabwean subsidiary Falcon Gold (Falgold).

The share buy-back is expected to facilitate implementation of the company’s proposed indigenisation plan.

Last month, New Dawn received the nod from the High Court to acquire ordinary shares in Falgold.

The Toronto Exchange-listed junior gold company focused on developing and expanding its mining assets and operations in Zimbabwe, announced that it had completed a $2 million non-brokered private placement with a Zimbabwe-focused fund managed by an international investment firm at $1,00 per share through the issuance of two million shares.

New Dawn said the private placement did not include any warrants while no finder’s fees or brokerage commissions were paid.

The private placement shares are subject to a four month holding period expiring on March 22, 2013.

“The proceeds will be utilised to fund the acquisition of the company’s 85 percent owned subsidiary in Zimbabwe, that it does not already own, in accordance with the pending Falgold Scheme of Arrangement, as well as related professional fees and costs, with any remaining proceeds allocated for general working capital purposes,” said the company.

The Falgold Scheme of Arrangement is conditional upon, and will not become effective until, the satisfaction of the remaining conditions precedent, which consist primarily of the receipt of necessary regulatory approvals in Zimbabwe.

The satisfaction of the conditions precedent could take several months.

Upon the conclusion of the private placement, New Dawn had 45,612,383 common shares outstanding.

New Dawn owns 100 percent of the Turk and Angelus Mine, the Old Nic Mine and the Camperdown Mine.

In addition, New Dawn, through its Falgold subsidiary, owns approximately 85 percent of the Dalny Mine, the Golden Quarry Mine and the Venice Mine, and a portfolio of prospective exploration acreage in Zimbabwe.

The Venice Mine is currently not in production. These six mines are operated as three gold camps.

New Dawn — with its large gold reserves, existing mine sites and production facilities and current exploration programmes, is a growing gold mining company in Zimbabwe — active in both gold production and exploration.

The group is deploying exploration capital in Zimbabwe, a country that has been proven to be geologically rich, highly prospective and significantly under explored. -
John Kachembere