[miningmx.com] — Zimbabwe is probing New Dawn Mining Corp’s acquisition of Central African Gold (CAG) which a top ally of President Robert Mugabe says is against the country’s empowerment law, state media reported on Friday.
Earlier this month, New Dawn, which is listed on the Toronto Stock Exchange, announced it had acquired 89 percent of the AIM-listed CAG in a bid to expand its Zimbabwean gold operations.
But the Minister of State for Presidential Affairs, Didymus Mutasa, is quoted by the state-controlled Herald newspaper as saying the transaction “did not comply with empowerment regulations and threatened Zimbabwe’s security and economic interests.”
