- The Company says the ZSE listing has become detrimental, given ongoing legal, compliance and audit costs
- The Offer of ZWL$0.13 per Falcon Gold share is deemed by the Board of Directors
- Falgold has been reporting a series of losses amidst technical insolvency
- Gold sales for the year ended 30 September 2019 decreased by 42%
Harare – Troubled gold mining and exploration group, Falcon Gold Zimbabwe Limited has announced that it is pursuing the voluntary delisting from the Zimbabwe Stock Exchange, highlighting that listing on the local bourse has not “recently” provided benefit to the company.
In a circular to shareholders released on Wednesday, Falgold said the ZSE listing has become detrimental, given ongoing legal, compliance and audit costs, and the inability to raise capital through the sale of shares.
“In the face of ongoing viability problems, the additional costs of being listed, with no compensating benefits, can no longer be borne by the Company.
“Accordingly, Falcon Gold has decided to propose to shareholders its delisting from the ZSE,” the Company said.
According to the Company, the coming into effect of the proposed delisting will be subject to the approval of the proposed delisting by a 75% vote of the votes of all shareholders present in person or represented by proxy.
This excludes shares held by New Dawn’s subsidiaries Falcon Mines and Boundary.
The Company highlighted that, “The Offer of ZWL$0.13 per Falcon Gold share is deemed by the Board of Directors of Falcon Gold to be fair, supported by an independent fair and reasonable opinion from the Independent Financial Advisor.”
The gold miner which owns Venice Mine in Kadoma and Golden Quarry mine in Shurugwi has been going through a rough patch over the recent years which saw the company failing to fulfil listing requirements and publish financial statements within stipulated periods.
In February 2019, the ZSE suspended trading in shares of the company pending the release outstanding financials.
Prior to that, the company has been reporting a series of losses amidst technical insolvency.
The suspension on the ZSE was later on lifted in September 2020b after the company had managed to publish the full-year 2018 financials as well as the half year interim results for the period ended 31 March 2019.
In the half-year ended 31 March 2019, the Group’s consolidated loss widened to ZW$27.2 million compared to a loss of ZW$1.7 million in the corresponding period the prior year.
Gold sales for the year ended 30 September 2019 decreased by 1,061 ounces or 42% to 1,447 ounces, as compared to 2,508 ounces for the year ended 30 September 2018.
During that period, Falcon Gold reported that it had suffered a catastrophic break down of the Main Number 2 Operating Mill at Golden Quarry Mine, which resulted in a cessation of gold production.
In addition, the power supply to the mine had also been terminated in January 2019 by the power utility ZESA due to non-payment of utility bills, causing all underground operations to cease.
Equity Axis News