Canadian-listed company, New Dawn Mining has raised $7,4 million for working capital and advance gold production at its three gold mines in Zimbabwe.
New Dawn is a company with mining interests in Zimbabwe.
It is currently expanding its gold production in Turk Mine, Angelus Mine and Central African Gold (CAG) where it controls an 89% stake.
New Dawn announced on Tuesday this week that it completed its non-brokered private placement at $1, 79 per share and 4, 1 million common shares were issued for the private placement.
The company said the private placement did not include any warrants and no brokerage commissions were paid.
The private placement shares are subject to a four-month hold period.
“The proceeds will be utilised for general working capital purposes and to advance gold production and mine development at the company’s three operating gold camps in Zimbabwe,” the mining company said.
In particular, the proceeds will be used in part to fund the working capital requirements of Central African Gold Plc, as well as to expand gold production at CAG’s gold mining operations in Zimbabwe,” New Dawn said in a statement.
The company is targeting to produce between 50 000 ounces to 60 000 ounces of gold output within the next 18 to 24 months.
The output is expected to increase to 100 000 ounces within the next four to five years.
The company has an 89% controlling interest in CAG as of June this year.
The acquisition is still being looked at by the Competition and Tariffs Commission and the Ministry of Youth Development, Indigenisation and Empowerment.
The Canadian-listed company has 42 204 843 common shares outstanding and 48 240 257 shares outstanding on a diluted basis.
The mining company’s mines include Golden Quarry and Camperdown mines in Gweru, Old Nic Mine in Bulawayo and Dalny Mine in Kadoma.
The mining company’s total attributable mineral reserves that include Turk Mine and Angelus Mine increased by 32% to 220 000 ounces of gold grading 3,81g/t from 1, 7 million tonnes of mineralised material.