[miningmx.com] — Central African Gold, the gold company with a portfolio of production and exploration assets in Africa, said on Thursday that three major shareholders had sold their shares in its company.
The AIM-quoted company said its board was notified that the three major
shareholders – Emerging Capital Partners (ECP) Africa Fund II, HBD Zim Investments and Investec Asset Management – had sold the entirety of their respective shareholdings in CAG.
Emerging Capital Partners held a 50.02% stake in CAG while HBD Zim
Investments had a 28.18% stake and Investec Asset Management held 10.48%.
The stakes, which collectively represent in aggregate 88.7% of the issued ordinary share capital of the company, were sold to Toronto Stock Exchange (TSX) listed New Dawn Mining Corp.
“The company would like to confirm that the transaction was undertaken without the involvement or knowledge of the board,” CAG said in a statement.
CAG has two subsidiaries in Zimbabwe: Falcon Gold Zimbabwe Limited (84.7%
owned) and Olympus Gold Mines Limited (100% owned) and a licence in Botswana
covering the extension of the Kraaipan greenstone belt from South Africa.
New Dawn in the meantime announced in a statement to the TSX on Wednesday that it has acquired the controlling interest in CAG as it expands its position in the Zimbabwean gold mining industry.
New Dawn is a Zimbabwe-focused junior gold company currently expanding gold production at its Turk and Angelus Mines.
In the TSX announcement New Dawn confirmed it had acquired the shares of
CAG’s three largest shareholders.
It said it has also acquired the convertible and non-convertible debt owed by CAG to the three major shareholders amounting to about $7.1m.
New Dawn said its targeted objective is to reach consolidated annualised gold
production of 50 000 to 60 000 ounces within 18 to 24 months and 100 000 ounces within four to five years with its ultimate goal being to reach 200 000 to 250 000 ounces of annualised gold production and become a mid-tier gold producer.
CAG said it was yet to receive a formal notification from New Dawn.
“The board has not yet had any meaningful discussions with New Dawn or its
representatives, but has received a letter requesting, inter alia, the appointment of two directors, representing New Dawn, to the board as soon as practicable,” CAG said.
It added that the board was seeking a meeting with New Dawn to discuss, among other things the appointments, which would be subject to the AIM Rules, and to understand New Dawn’s plans for CAG, its businesses, employees and shareholders.