BULAWAYO, May 27 (The Source) – New Dawn requires $30 million to recapitalise operations at its Shurugwi projects and will seek to raise the money offshore after local financial institutions failed to meet the need, the chief executive said on Tuesday.
The Canadian-listed junior miner is the parent company of Falcon Gold, the owners of Dalny Mine, along with Venice Mine in Kadoma and Golden Quarry mine in Shurugwi.
Ian Saunders told The Source that the money would be used to complete Phase Two at the Golden Quarry Mine and Camperdown Mines in the gold rich greenstone belt.
“At the Shurugwi projects we are looking at $25 million and the other $5 million will be for administrative costs,” said Saunders, who is the president and chief executive.
He said the company will seek to raise the money offshore after local banks failed to provide funding for the project citing cash shortages in the economy.
“Banks argue that they do not have money for long term lending because most deposits are of short term nature,” he said.
New Dawn owns 100 percent of Camperdown Mine and 85 percent of Golden Quarry Mine.