Zimbabwe OK's New Dawn's indigenous ownership plan
New Dawn Mining (TSX:T.ND) – a Zimbabwe focused gold miner – has managed to appease Robert Mugabe's ultra-nationalist government, to an extent.
The minister in charge of indigenisation – an economic law aimed at giving Zimbabweans more control over foreign owned companies – has approved the company's 'Plan of Indigenisation.'
Under the plan, four indigenous investor groups will acquire interests in New Dawn. The company will also transfer, at no charge, 15% of equity interests from its Zimbabwe subsidiary to an employee ownership scheme and a community trust.
Ultimately, indigenous investors will hold about 42% of the company's shares.
"The implementation of the Plan will require a number of steps and procedures, including amending the Company's capital structure to provide for the specific equity interests contemplated," the firm noted in a news release.
Aside from these developments, the company is continuing its re-incorporation in the Cayman Islands – for tax purposes – and considering plans to de-list from the Toronto Stock Exchange.
The company sank 50% on the Toronto exchange last month after announcing plans to discuss share consolidation. New Dawn closed down one of its six Zimbabwe mines earlier this year.