New Dawn Announces Further Developments Resulting from Recent Discussions with Zimbabwe Government Relating to New Dawn's Proposed Indigenisation Plan
TORONTO, Sept. 1, 2011 /CNW/ --
TORONTO, Sept. 1, 2011 /CNW/ - New Dawn Mining Corp. (TSX: ND) ('New Dawn' or the 'Company') announced that it has signed a Memorandum
of Understanding ('MOU') with the Ministry of Youth Development,
Indigenisation and Economic Empowerment (the 'Ministry') through the
National Indigenisation and Economic Empowerment Board ('NIEEB'), which
establishes a broad-based framework for engagement with respect to the
structuring and implementation of New Dawn's proposed Indigenisation
Plan (the 'Indigenisation Plan'). The MOU is confidential.
The signing of the MOU is part of New Dawn's continuing efforts to
comply with the Indigenisation and Empowerment laws, Statutory
Instruments and General Notices, as promulgated by the Government of
Zimbabwe, that require that mining companies operating in Zimbabwe
adopt plans that result in 51% of their equity being owned by
indigenous Zimbabweans. New Dawn's Zimbabwe operating subsidiaries,
Casmyn Mining Zimbabwe (Private) Limited, Falcon Gold Zimbabwe Limited
and Olympus Mines Limited, are all currently non-indigenous companies
for purposes of the Indigenisation and Economic Empowerment Act and the
related Regulations.
New Dawn believes that the signing of the MOU represents a significant
step forward in the process of structuring and implementing an
Indigenisation Plan that is acceptable to both the Zimbabwe Government
and to the Company's key stakeholder groups. However, as there is
currently substantial uncertainty surrounding the implementation of the
Indigenisation laws and regulations, there can be no assurance that the
Company will be successful in its efforts to comply with the
Indigenisation laws and regulations under commercially viable terms and
conditions.
New Dawn's proposed Indigenisation Plan includes engaging directly with
indigenous sources of capital in Zimbabwe. Additionally, the Company is
considering a secondary listing of its common shares on the Zimbabwe
Stock Exchange in order to provide a domestic platform for buying and
selling New Dawn common shares by indigenous Zimbabweans (in addition
to New Dawn maintaining its primary listing on the Toronto Stock
Exchange). Furthermore, the Company is considering establishing
employee and community share ownership schemes for the benefit of
indigenous Zimbabweans, as well as various other structures that would
result in broad-based participation by indigenous Zimbabweans.
Included in the discussions with the Government of Zimbabwe is the
concept of allocating equity to a sovereign wealth fund designated by
the Government of Zimbabwe, to reflect the sovereign ownership of
minerals in the ground, based on an appropriate valuation model.
Through fostering investment by local indigenous parties in the Company
at fair value, New Dawn is seeking to fulfill its obligations to comply
with the Indigenisation laws and regulations, thereby increasing local
ownership in the Company, while also contributing to the growth of the
mining sector in Zimbabwe, and enhancing the ability of the Company to
develop its portfolio of mining properties in Zimbabwe. The
finalization and successful implementation of the Company's
Indigenisation Plan is expected to provide New Dawn with additional
working capital resources to support its efforts to increase annualized
gold production to 100,000 ounces by the end of 2014.
New Dawn will continue to engage in confidential discussions with the
Government of Zimbabwe, through the Ministry and NIEEB, with respect to
the structure and implementation of the Company's final Indigenisation
Implementation Plan. The Company will provide further information to
shareholders when such discussions are finalized, or when developments
otherwise warrant.
ABOUT NEW DAWN
New Dawn is a Zimbabwe-focused junior gold company that is currently
implementing its plan to expand its consolidated annualized gold
production to 38,000 to 40,000 ounces by the end of 2011, and then to
an expected 50,000 to 60,000 ounces by the end of 2012. New Dawn
targets further increasing annualized gold production to 100,000 ounces
by the end of 2014.
New Dawn owns 100% of the Turk/Angelus Mine Complex, the Old Nic Mine
and the Camperdown Project. In addition, New Dawn has an approximately
85% equity interest in the Dalny, Golden Quarry and Venice Mines, and a
large portfolio of prospective exploration acreage in Zimbabwe. These
six mines, four of which are now operational, are divided into three
significant gold camps, and the Company is in the process of expanding
production at these sites. All properties and exploration projects are
located in Zimbabwe.
In addition to gold production, New Dawn is also actively exploring on
highly prospective ground employing modern exploration techniques and
deploying capital in Zimbabwe, a country that is proven to be
geologically rich, highly prospective, and significantly under
explored.
New Dawn, with its large gold resource, existing production facilities
and current exploration efforts, is well on the path to becoming a
mid-tier gold mining company in Zimbabwe, active in both gold
production and gold exploration.
Information on New Dawn's gold reserve and resource estimates is
included at the Company's website at www.newdawnmining.com or in the Company's filings on SEDAR at www.sedar.com.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.
Statements in this press release regarding the Company's business which
are not historical facts are 'forward-looking statements' that involve
risks and uncertainties, such as estimates and statements that describe
the Company's future plans, objectives or goals, including words to the
effect that the Company or management expects a stated condition or
result to occur. Since forward-looking statements address future events
and conditions, by their very nature, they involve inherent risks and
uncertainties. Actual results in each case could differ materially from
those currently anticipated in such statements.
The contents of this news release were supervised and reviewed by Ian R.
Saunders, B.Sc., who is President, Chief Executive Officer, and a
Director of New Dawn Mining Corp., and who is a Qualified Person within
the meaning of NI 43-101.
Special Note Regarding Forward-Looking Statements: Certain statements included or incorporated by reference in this news
release, including information as to the future financial or operating
performance of the Company, its subsidiaries and its projects,
constitute forward-looking statements. The words 'believe,' 'expect,'
'anticipate,' 'contemplate,' 'target,' 'plan,' 'intends,' 'continue,'
'budget,' 'estimate,' 'may,' 'schedule' and similar expressions
identify forward-looking statements. Forward-looking statements
include, among other things, statements regarding targets, estimates
and assumptions in respect of gold production and prices, operating
costs, results and capital expenditures, mineral reserves and mineral
resources and anticipated grades and recovery rates. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies. Many factors
could cause the Company's actual results to differ materially from
those expressed or implied in any forward-looking statements made by,
or on behalf of, the Company. Such factors include, among others,
risks relating to reserve and resource estimates, gold prices,
exploration, development and operating risks, political and foreign
risk, indigenisation risk, uninsurable risks, competition, limited
mining operations, production risks, environmental regulation and
liability, government regulation, currency fluctuations, recent losses
and write-downs and dependence on key employees. See 'Risk Factors' in
the Company's Annual Information Form - 2010. Due to risks and
uncertainties, including the risks and uncertainties identified above,
actual events may differ materially from current expectations.
Investors are cautioned that forward-looking statements are not
guarantees of future performance and, accordingly, investors are
cautioned not to put undue reliance on forward-looking statements due
to the inherent uncertainty therein. Forward-looking statements are
made as of the date of this press release and the Company disclaims any
intent or obligation to update publicly such forward-looking
statements, whether as a result of new information, future events or
results or otherwise.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/September2011/01/c8097.html
Investor Relations Contact: Richard Buzbuzian 1 416.585.7890
President and Chief Executive Officer: Ian R. Saunders 1 416.585.7890
Visit us on the internet: http://www.newdawnmining.com or
Email us at: info@newdawnmining.com