ZSE-listed gold miner, Falcon Gold Zimbabwe Limited (Falgold) is still in the process of negotiating with potential investors on a possible cash offer to minority shareholders and the finalization of de-listing from the local bourse.
Falgold is a subsidiary of New Dawn Mining Group.
Earlier this year, the struggling gold producer announced that it was de-listing from the Zimbabwe Stock Exchange (ZSE) after failing to subvert operational challenges.
The company has been seeking to raise capital to bolster operations for some time but this has had limited success.
“Further to the Cautionary announcement dated 16 June 2020. The Directors of Falcon Gold Limited wish to advise all shareholders and the investing public that the company is still engaged in discussions that involve a potential transaction that may have a material impact on the value of the Company’s share. The transaction relates to a cash offer to minorities and the termination of the ZSE listing of the company,” company secretary, Qhubeka Nkomo said this week.
“Further details of the transaction will be provided once discussions have been finalized,” the company said.
Falgold has been making losses in recent years and in 2018 it failed to pay outstanding debts to foreign creditors which led to suppliers cutting off critical supplies and halting of operations.
It also failed to publish audited financial statements leading to its seven month voluntary suspension from the ZSE, only to be admitted in September last year.