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Falgold issues another cautionary statement

By Oliver Kazunga

Listed mining group, Falcon Gold Zimbabwe (Falgold) has again issued a cautionary statement advising that it is still contemplating a capital raise initiative which if concluded may have a direct impact on the price of its shares.

The Zimbabwe Stock Exchange, or ZSE, is the official stock exchange of Zimbabwe. Its history dates back to 1896 but has only been open to foreign investment since 1993
The Zimbabwe Stock Exchange, or ZSE, is the official stock exchange of Zimbabwe. Its history dates back to 1896 but has only been open to foreign investment since 1993

Of late, the gold mining concern has been issuing cautionary statements to that effect and in August last year it announced that it was considering options for an additional US$2,5 million to recapitalise its operations.

In a cautionary statement posted on the Zimbabwe Stock Exchange (ZSE) website on Friday, Falgold company secretary Mr Qubeka Nkomo said:

“The directors of Falcon Gold Zimbabwe Limited wish to advise its shareholders and members of the public, that the company is still contemplating a capital raise which, if successfully concluded, may have an effect on the price of the company’s shares.

“The directors therefore advise the shareholders of Falcon Gold Zimbabwe Limited, and the public, to exercise caution and to consult their professional advisors when dealing in the shares of the company.”

In September last year, ZSE lifted the seven-month suspension in trading of Falgold shares after the gold miner fulfilled listing requirements of the bourse.

Falgold volunteered to be suspended from trading its shares in February 2019 after they had failed to publish their audited financial statements for the period ended September 30, 2018.

The local bourse has now lifted the suspension after the company took corrective measures to meet the obligations.

Falgold is a gold mining and exploration company in Zimbabwe founded in 1991.

It primarily explores for gold, base metals and precious metals and has an operational processing plant and ancillary infrastructure which supports a central processing plant that treats ore from Pickstone.

Falgold is a subsidiary of New Dawn Mining Group.

New Dawn owns Dalny Mine in Chakari, Venice Mine in Kadoma and Golden Quarry Mine in Shurugwi. The Chronicle

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