- FalGold officially off local bourse effective 10 November
- The miner had been struggling for years to keep up with operations cost
- Move expected to make it easier for the parent to salvage its operations
Harare – After several months since the initial indication to delist, gold mining and exploration company has finally left the Zimbabwe Stock Exchange (ZSE) with effect from the 10th of November after years of constant struggles with operational problems.
Falcon Gold Zimbabwe is a subsidiary of Canadian miner New Dawn Mining Group and owns Dalny mine in Chakari, Venice Mine in Kadoma and Golden Quarry mine in Shurugwi.
In a statement released by the ZSE, the bourse’s CEO Justin Bgoni revealed that the delisting of the miner was entirely voluntary.
“Following the approval by minority shareholders at an Extraordinary General Meeting held on 29 October 2020, Falgold applied for voluntary termination of its listing on Zimbabwe Stock Exchange Limited pursuant to section 11 of the ZSE Listing Requirements.”
Falgold had prior sought to buy shares held by its minority shareholders back at ZWL0.13 per share
The de-listing and the buyout of minority shareholders were measures the majority shareholder, Canadian based New Dawn, wanted implemented before rescuing the firm whose operations are at a standstill.
“A number of structures have been discussed to address Falcon Gold’s working capital issues (and the legal paths to implement such structures), but New Dawn has advised that the existence of the approximately 15 percent minority interest, combined with the continued listing of Falcon Gold’s shares on the ZSE, are the factors that are preventing New Dawn from being able to provide the critically needed capital injection into Falcon Gold,” the miner said.
“In essence, it is against New Dawn’s economic interest, and would furthermore be fiduciary irresponsible for New Dawn to provide funding to Falcon Gold with minority interest still in place.”
It is also reported that the company in the past year had made attempts without much success to raise US$3 million to inject in its main operations at the Golden Quarry located in Shurugwi.
It has therefore opted for the de-listing citing that it was no longer beneficial for the firm to remain on the ZSE post failing to mobilise funding to invest in operations through the sale of shares.
“As a public company that is exclusively traded on the ZSE and only in Zimbabwe, such listing has not in recent years provided any benefit to Falcon Gold,” the miner said.
“In fact, the ZSE listing has been detrimental given ongoing legal, compliance and audit costs, and the inability to raise capital through the sale of shares.”
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