October 10, 2019

Is a new dawn beckoning for Falgold?

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Ndaka Majaka

STRUGGLING gold concern, Falcon Gold Zimbabwe Limited (Falgold), says it is
engaged in crucial discussions with a potential suitor, amid indications the ailing
miner could have a new owner soon.

Falgold – which is 84,7 percent owned by Canadian-listed New Dawn Mining Corporation (New Dawn) – has seen its problems continue to mount after its total
comprehensive loss for the six months to March 31, 2019 shot up by 1 519 percent
to ZWL 27 million from ZWL 1,7 million.

It is understood that New Dawn is anxious to dispose the ailing subsidiary after
giving it a year to repay loans to the parent company.

The gold miner, which recently resumed trading on the Zimbabwe Stock Exchange
after it was suspended for failing to publish its financials, also recorded a net
working capital deficit of $11 million, up 68 percent.

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