Mali to get $1.2 billion from miners after talks
Mali’s military leadership has taken a harsh stance against international miners with an extensive overhaul of the sector in recent years.
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.
See also: Mugabe stirs nationalist fervor, pushes forward with indigenisation
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.
Comments
Sven
Another failure in the making. Should be interesting!