New Dawn Mining Private Placement

 

TIDMCAN 
 
RNS Number : 9255V 
Central African Gold PLC 
10 November 2010 
 

 
 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 
 
                Central African Gold Plc ('CAG' or 'the Company') 
    New Dawn Mining Raises CAN$7,520,850 in Non-Brokered Private Placement at 
                               CAN$1.80 per share 
 
Central African Gold Plc, the AIM quoted gold mining and exploration company, 
notes an announcement released by its 88.68% shareholder New Dawn Mining Corp 
(TSX:ND) ('New Dawn'), on 9 November 2010. 
 
The announcement, which is set out in full below, relates to a private placement 
by New Dawn of 4,178,250 common shares, with several funds managed by an 
international investment firm based in the UK, at a placing price of CAN$1.80 
per share, raising proceeds totalling CAN$7,520,850. 
 
"Toronto, Ontario, November 9, 2010 - New Dawn Mining Corp. (TSX: ND) ("New 
Dawn" or the "Company") announced that it has completed a non-brokered private 
placement with several funds managed by an international investment firm based 
in the UK at CAN$1.80 per share with the issuance of 4,178,250 common shares for 
proceeds totalling CAN$7,520,850. 
 
The private placement did not include any warrants, and there were no brokerage 
commissions paid. The private placement shares are subject to a four month hold 
period.. 
 
The proceeds will be utilized for general working capital purposes and to 
advance gold production and mine development at the Company's three operating 
gold camps in Zimbabwe.  In particular, the proceeds will be used in part to 
fund the working capital requirements of Central African Gold Plc ("CAG"), as 
well as to expand gold production at CAG's gold mining operations in Zimbabwe. 
As previously reported, the Company acquired its investment consisting of an 89% 
controlling interest in CAG in June 2010. 
 
New Dawn now has 42,204,843 common shares outstanding and 48,240,257 shares 
outstanding on a diluted basis. 
 
About New Dawn ... 
 
New Dawn is a Zimbabwe-focused junior gold company currently expanding gold 
production at its wholly-owned Turk and Angelus Mines and, with its June 2010 
investment in which it acquired an 89% controlling interest in Central African 
Gold Plc ("CAG"), New Dawn is targeting consolidated annualized gold production 
of 50,000 to 60,000 ounces within the next 18 to 24 months, increasing to 
100,000 ounces of annualized gold production within the next 4 to 5 years. 
 
Having recently filed a new NI 43-101-compliant mineral reserve and resource 
estimate for the CAG properties, New Dawn's total attributable mineral reserves, 
including its Turk and Angelus Mines, increased 32% to 220,000 ounces of gold 
grading 3.81 g/t from 1,785,000 tons of mineralized material.  The attributable 
mineral reserves are comprised of attributable proven mineral reserves of 
109,400 ounces of gold grading 3.69 g/t from 874,700 tons of mineralized 
material and attributable probable mineral reserves of 110,600 ounces of gold 
grading 3.78 g/t from 910,300 tons of mineralized material. 
 
Additionally, New Dawn's total attributable measured and indicated mineral 
resources (inclusive of attributable mineral reserves) increased by 92% to 
1,558,400 ounces of gold grading 2.37 g/t from 20,436,000 tons of mineralized 
material and New Dawn's total attributable inferred mineral resources increased 
by 54% to 552,600 ounces of gold grading 4.95 g/t from 3,477,000 tons of 
mineralized material. 
 
Presently, New Dawn operates 3 significant gold camps in Zimbabwe, where it owns 
6 mines, 3 of which are currently producing gold and expanding production 
annually. Ultimately, New Dawn looks to becoming a leading gold mining company 
in Zimbabwe, active in both gold production and gold exploration, by employing 
modern mining techniques and deploying capital in a country that is geologically 
rich, highly prospective, and vastly under explored. 
 
Additional information on New Dawn's gold reserve and resource estimates is 
included at the Company's website at www.newdawnmining.com or in the Company's 
filings on SEDAR at www.sedar.com. 
 
The TSX has not reviewed and does not accept responsibility for the adequacy or 
the accuracy of this release. 
 
The contents of this news release were supervised and reviewed by Ian R. 
Saunders, B.Sc., who is President, Chief Executive Officer, and a Director of 
New Dawn Mining Corp., and who is a Qualified Person within the meaning of NI 
43-101. 
 
For Further Information: 
Investor Relations Contact:  Richard Buzbuzian +1 416.585.7890 
 
President and Chief Executive Officer:  Ian R. Saunders +1 416.585.7890 
 
Visit us on the internet:  http://www.newdawnmining.com or 
 
Email us at:  [e-mail] 
 
Special Note Regarding Forward-Looking Statements:  Certain statements included 
or incorporated by reference in this news release, including information as to 
the future financial or operating performance of the Company, its subsidiaries 
and its projects, constitute forward-looking statements.  The words "believe," 
"expect," "anticipate," "contemplate," "target," "plan," "intends," "continue," 
"budget," "estimate," "may," "schedule" and similar expressions identify 
forward-looking statements.  Forward-looking statements include, among other 
things, statements regarding targets, estimates and assumptions in respect of 
gold production and prices, operating costs, results and capital expenditures, 
mineral reserves and mineral resources and anticipated grades and recovery 
rates.  Forward-looking statements are necessarily based upon a number of 
estimates and assumptions that, while considered reasonable by the Company, are 
inherently subject to significant business, economic, competitive, political and 
social uncertainties and contingencies.  Many factors could cause the Company's 
actual results to differ materially from those expressed or implied in any 
forward-looking statements made by, or on behalf of, the Company.  Such factors 
include, among others, risks relating to reserve and resource estimates, gold 
prices, exploration, development and operating risks, political and foreign 
risk, uninsurable risks, competition, limited mining operations, production 
risks, environmental regulation and liability, government regulation, currency 
fluctuations, recent losses and write-downs and dependence on key employees. 
See "Risk Factors" in the Company's Annual Information Form - 2009.  Due to 
risks and uncertainties, including the risks and uncertainties identified above, 
actual events may differ materially from current expectations.  Investors are 
cautioned that forward-looking statements are not guarantees of future 
performance and, accordingly, investors are cautioned not to put undue reliance 
on forward-looking statements due to the inherent uncertainty therein. 
Forward-looking statements are made as of the date of this press release and the 
Company disclaims any intent or obligation to update publicly such 
forward-looking statements, whether as a result of new information, future 
events or results or otherwise." 
 
                                    **ENDS** 
 
For further information please visit www.centralafricangold.comor contact: 
 
+-------------+------------------------+---------------------+ 
| Roy         | Central African Gold   | Tel: [phone]  | 
| Pitchford / | Plc                    | 9985                | 
| Ian         |                        | Tel: +(263) 9       | 
| Saunders    |                        | 76826/7/8           | 
|             |                        |                     | 
+-------------+------------------------+---------------------+ 
| Stuart      | Strand Hanson Limited  | Tel: [phone]  | 
| Faulkner /  |                        | 3494                | 
| James       |                        |                     | 
| Spinney     |                        |                     | 
|             |                        |                     | 
+-------------+------------------------+---------------------+ 
| Hugo de     | St Brides Media and    | Tel: [phone]  | 
| Salis /     | Finance Ltd            | 1177                | 
| Felicity    |                        |                     | 
| Edwards     |                        |                     | 
+-------------+------------------------+---------------------+ 
Notes to Editors 
 
CAG 
Central African Gold Plc is a gold mining company with a portfolio of 
production, development and exploration assets in Zimbabwe, where the Company 
operates through two subsidiaries, Falcon Gold Zimbabwe Limited (84.7 per cent. 
owned) and Olympus Gold Mines Limited (100 per cent. owned).  Through these 
subsidiaries, CAG has four main gold mines, the Dalny, Old Nic, Golden Quarry 
and Camperdown mines, which arelocated in the highly prospective Kadoma, 
Shurugwi and Bulawayo gold regions in Zimbabwe. 
 
NDM 
The Company's 88.68% shareholder is Toronto Stock Exchange listed New Dawn 
Mining Corp. ('NDM'), a gold company with a broad portfolio of production and 
exploration assets also in Zimbabwe.   NDM owns and operates the Turk and 
Angelus Mines in the upper southwest area of Zimbabwe, which it believes have 
the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. 
 It is NDM's objective to orchestrate the development of CAG's mining operations 
and exploration portfolio, as well as its own, to become a mid-tier gold 
producer focussed in Zimbabwe, with a consolidated annualised gold production to 
between 50,000 and 60,000 ounces within the next 18 to 24 months, increasing to 
100,000 ounces within the next 4 to 5 years. 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCFFASMSFSSEDF