Zimbabwe-focused junior gold explorer New Dawn Mining (TSX:ND) said Friday it has increased the amount it will lend to AIM-listed Central African Gold (CAG), the company in which it has an 89% controlling interest, to US$5 million.
The increase follows the agreement made with CAG in August, under which New Dawn would provide CAG with up to US$2.0 million to support the company's gold mining operations in Zimbabwe.
The hike to $5 million was made to further support the general working capital requirements of Central African Gold, New Dawn said. The loan does not have a maturity date, and is repayable on demand.
In June, New Dawn acquired an 89% stake in Central African Gold to further consolidate its position in Zimbabwe, as it is now targeting 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 four to five 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.
The company'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, and its total attributable inferred mineral resources went up by 54% to 552,600 ounces of gold grading 4.95 g/t.