HARARE – Canada-based New Dawn Mining Corporation (New Dawn) says it will complete transfer and registration of its shares in Cayman Islands by year end following its delisting from the Toronto Stock Exchange.
The Zimbabwe-focused group — with several gold mines in the country — said after share consolidation, it intends to take immediate steps to terminate its reporting obligations to Canadian securities regulators.
Following the implementation of the share consolidation, the company expects to implement the continuance, which is expected to occur during December 2013.
“Upon the effectiveness of the continuance, shareholders will be entitled to exchange their post-consolidation common shares of the Canadian-domiciled New Dawn legal entity for newly-issued ordinary shares of the Cayman Islands New Dawn legal entity on a one-for-one basis,” said the miner in a circular to shareholders.
This comes as New Dawn was given the nod by shareholders to cease trading on the Toronto bourse at the close of trading on November 20, 2013.
The gold producer 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 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.
Despite the approval of its indigenisation plan by the government, New Dawn said this will not relieve the group of its liquidity and capital pressures.
The junior gold miner — which owns and operates several mines in three gold camps in the country — said the endorsement of its empowerment deal last month will not underpin provision of capital required for its growth and development schemes.