HARARE – Falcon Gold, one of Zimbabwe’s oldest gold mines, said on Monday it would approach the Zimbabwe Stock Exchange (ZSE) with a view to delist form the bourse.
Falgold is one of only four mining counters listed on the ZSE, including another gold miner, RioZim, Hwange Colliery Company Limited and Bindura Nickel Corporation.
The firm took the first steps towards its planned exit on Monday, when it sought voluntary suspension of its shares on the Zimbabwean bourse pending publication of audited financial results for the half year to September 30, 2019.
This was confirmed by the ZSE soon after the parties agreed to the suspension.
“The Zimbabwe Stock Exchange Limited hereby notifies the investing public of the voluntary suspension from trading in shares of Falcon Gold Zimbabwe Limited with effect from 02 March 2020 pending publication of audited financial results for the year ended 30 September 2019 and a circular to shareholders regarding the proposed termination of listing,” said the ZSE.
“At the company’s request, the ZSE sought and was granted permission to suspend trading in Falcon Gold Zimbabwe Limited’s shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provisions of Section 64 (1) (a) (ii) of the Securities and Exchange Act [Cap 24:25]. In terms of Section 9 of the ZSE Listings Requirements, the Company should continue to discharge its obligations to the Shareholders and the ZSE during the suspension until finalisation of the termination of listing,” the statement said.
Falgold is a subsidiary of the Canada listed New Dawn Mining Corporation, whose activities spun from exploration, extraction and processing of minerals.
The firm operates Dalny Mine in Chakari, Venice Mine in Kadoma and Golden Quarry Mine in Shurugwi.
Falgold has been experiencing operational problems for some time due to its failure to repair and replace antiquated machinery owing to capital constrains.