Falgold seeks to raise $30m

27 Apr, 2018 - 00:04 0 Views
Falgold seeks to raise $30m

eBusiness Weekly

Golden Sibanda and Africa Moyo
Bulawayo. — Zimbabwe Stock Exchange listed gold miner, Falcon Gold, is targeting to raise $30 million to finance a tailings treatment plant, working capital and exploration on four gold assets in Shurugwi, Midlands Province.

New Dawn Mining president and chief executive Ian Saunders told Business Weekly immediately after the firm’s annual general meeting in Bulawayo yesterday that the new dispensation has resulted in huge investor interest in Zimbabwe’s mining assets in general and the group’s assets in particular.

Saunders said the mining group wanted to capitalise on huge investor interest and renewed confidence in Zimbabwe to raise funding which is badly required to fund phase two growth, anchored on gold assets in Shurugwi.

Falcon Gold is an 85 percent owned subsidiary of TSX listed New Dawn Mining Corporation.
It owns Turk Mine, Angelus Mine, Golden Quarry, Camperdown, Wanderer Mine, Venice Mine.

Saunders said the new environment has ushered in exciting times for the mining sector and the company believes the prevailing conditions augur well for Zimbabwe’s mine sector to reach its full potential.

He said while Turk Mine, one of Falcon Gold’s few producing assets had 90 percent of its capital needs covered, a significant package of the firm’s gold assets in Shurugwi requires significant capital injection.

“Probably 90 percent of capital required for that asset (Turk Mine) has been sourced over the years and it’s fine. The area that has the biggest growth potential for us in particular is the area in and around Shurugwi.

“We have a very significant asset package and it is my belief, based on my knowledge of the Zimbabwean and African mining industry; because I spent a significant amount of time in South Africa, that the Shurugwi area could become the largest gold producing area in the country.

“There are three significant assets there; Golden Quarry, Wanderer Mine and Camperdown and the important thing is that these three are close to one another, so our intention is to build one processing plant.”

Saunders said building a central processing facility in Shurugwi will achieve scale.
“So our next phase of growth, which is phase two, is targeting $30 million. Of that, $10 million will go towards a tailings treatment project, $10 million to exploration of those three assets, and $5 million for our phase one efficiency and working capital needs,” Saunders said.

The balance of $5 million would be invested in a completely new gold exploration project located north of the Camperdown Mine, which is situated about 30 kilometres south east of Gweru.

Saunders pointed out that several global gold mining companies have recently visited some of the group’s mining assets, from which it could raise requisite funding.

He said this was achievable as long as the environment continues to improve and if Zimbabwe holds credible elections.

Zimbabwe is set to go for harmonised elections around July this year.
“The assets are there, but we could never build (growth) because of lack of capital.”
In terms of production, Falcon Gold expects to produce 18 000 ounces at Turk Mine, Golden Quarry and Camperdown, reopened in April spent long period closed due strike action, is seen producing 10 000oz.

“Finally the mining industry of Zimbabwe has got to show its capacity because we really did not have real capital. I think the one concern I have as a mine CEO is that we have a serious deficit of skills,” Saunders said.

He said while many students were graduating from universities and colleges, this was not enough as skill and experience was built over time, which has not happened in the last decade or so due to the bad state of the economy.

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