Gold producer, Falcon Gold Zimbabwe Limited (Falgold), will this month seek shareholders’ approval to de-list from the Zimbabwe Stock Exchange (ZSE) saying the local bourse has not provided benefits to the company.
A crucial Extraordinary General Meeting to seek the shareholders’ nod to terminate the listing of the company on the local bourse has been slated for October 29 in Bulawayo.
Falgold is a subsidiary of New Dawn Mining Group.
A cash offer to minority shareholders has been made by Boundary Investments (Pvt) Limited, a wholly-owned subsidiary of New Dawn Mining Group, to acquire the entire shareholding in Falgold not already held indirectly by New Dawn.
Imara Corporate Finance Zimbabwe has been appointed financial advisors.
Falgold said the listing has become detrimental, given ongoing legal, compliance and audit costs, and the inability to raise capital through the sale of shares.
“In the face of ongoing viability problems the additional costs of being listed, with no compensating benefits, can no longer be borne by the company.
Accordingly, Falcon Gold has decided to propose to shareholders its delisting from the ZSE,” the gold producer said.
Last year, Falgold delayed publishing its audited financial statements for the year to September 30, 2019, in conformity with International Financial Reporting Standard and International Accounting Standard for the IFRS and IAS and ZSE Listing Requirements.
In 2019, power utility ZESA cut off Falgold unit, Golden Quarry, due to non-payment of utility bills, causing all underground operations to cease.
Falcon Gold requested a suspension of trading in February 2020 and its stock was suspended by the ZSE with effect from February 27, 2020.