The Zimbabwe-focused, Toronto-based company has three major gold camps in Zimbabwe, and wholly owns three of the six mines on the properties, with a majority stake in the remaining three.
New Dawn’s stock on the Toronto Stock Exchange was trading up 6% at US$1,40 on Friday. The confidential MOA establishes a broad framework for the structuring and implementation of New Dawn’s proposed indigenisation plan.
Earlier this year, the government of Zimbabwe established a new Indigenisation and Economic Empowerment Act that requires the state to control 51% of non-indigenous mining companies.
The Act stipulated that each non-indigenous mining company must submit an “indigenisation plan” within 45 days, and dispose of 51% of its shares to a “designated entity” within six months, which can be extended by a period of no more than three months in certain circumstances.
According to New Dawn, the announcement defines a “designated entity” as a state-owned or controlled company, or an employee share ownership scheme.
The value of the shares that will be transferred will be calculated based on a valuation agreed by the Zimbabwe ministry and the said non-indigenous mining company.
The Indigenisation and Economic Empowerment Act was signed into law in March 2008. — www.newdawnmining.com.
