HARARE – Canada-based New Dawn Mining Corporation (New Dawn) on Wednesday delisted from the Toronto Stock Exchange and moved its operations to the tax haven of Cayman Islands as part of on-going attempts to cut costs.
The Zimbabwe-focused group with several gold mines in the country believes the proposal to transform from a listed to an unlisted company would result in significant savings.
Over the past few years, the Cayman Islands, in the Caribbean Sea, have attracted a number of off-shore companies because of its tax-free status.
New Dawn — which recently had its indigenisation plan approved by President Robert Mugabe’s government ? was given the nod by shareholders on Tuesday to cease trading on the Toronto bourse at the close of trading on November 20, 2013.
“The company currently anticipates that it will effect the share consolidation towards the end of November 2013, and the continuance sometime in December 2013.
“Following the consolidation, the Company intends to take steps to terminate its reporting obligations to Canadian securities regulators,” said the miner in a circular to shareholders.
New Dawn hopes that operating as a private company is more conducive to the successful implementation of a major restructuring that may be necessary to stabilise the company’s operations and attempt to establish a viable capital structure to allow for the preservation and future development of the company’s assets in Zimbabwe.
The company was also given the green light by its shareholders to consolidate common shares of New Dawn on the basis of one post-consolidation share for every 100 000 common shares currently held.
“Each shareholder of the company, other than dissenting shareholders, holding a post-consolidation fractional common share will be entitled to receive a payment for that fractional share calculated on the basis of C$0,13 for each common share held immediately prior to the consolidation.
“Such payment will be without interest and will be made upon application to the Company’s transfer agent, consistent with the instructions included in the Management Information Circular and the related Letter of
Transmittal,” said the company.
In August, New Dawn placed its Dalny Mine near Kadoma under care and maintenance after the Zimbabwe Electricity Supply Authority disconnected power over non-payment of bills.
The miner, facing a fall in global gold prices, has introduced a host of cost cutting measures at its mines which included slashing of salaries for workers and management for a three-month period.
New Dawn, a junior gold company, owns 100 percent of the Turk and Angelus, Old Nic and Camperdown mines.
Through its Falcon Gold Zimbabwe Limited subsidiary, it also owns 84,7 percent of Dalny, Golden Quarry and Venice mines, and a portfolio of prospective exploration acreage in Zimbabwe.