Ian Saunders, New Dawn Mining chief executive officer and president, joined the CAG board as an executive director effective last week while Robert Weingarten was also elevated at the same time but would hold no executive powers.
Both Saunders and Weingarten have joined the boards of three CAG subsidiaries namely Falcon Gold Zimbabwe, Olympus Gold Mines and Falcon Mines South Africa.
CAG said Roy Pitchford remains CEO and acting chairman of the company while Craig Campbell resigned as chief financial officer, with immediate effect, to pursue other opportunities.
These changes reflect New Dawn’s acquisition of around 88, 7% of the issued share capital of CAG last month.
Presidential Affairs minister Didymus Mutasa said government wanted to investigate the transaction involving the companies listed on the London Stock Exchange’s AIM, an international market for emerging companies, and the Toronto Stock Exchange (TSX), the largest bourse in Canada.
Mutasa last week said he was still to discuss with colleagues before issuing further statements on how they intended to investigate the deal.
Investigations into the deal would present serious administrative constraints as the companies are dully registered on bourses outside the country and satisfy the requirements of the respective bourses before exercising shareholder rights.
Pitchford said he hoped the two new appointees would “provide valuable assistance to CAG in developing its strategic opportunities, particularly in view of Ian’s extensive experience in Zimbabwe and New Dawn’s wide ranging gold mining expertise”.
New Dawn’s acquisition caught the market, including the board, by surprise. The board then said they were not aware of the transaction but awaited discussions with New Dawn or its representatives after it received a letter requesting the appointment of two directors.
As part of the acquisition, New Dawn completed a purchase through a deed of assignment “of the convertible and non-convertible debt, consisting of both principal and accrued interest, owed by CAG to the sellers amounting to approximately US$7 080 000”.