JOHANNESBURG (miningweekly.com) - The board of Aim-listed Central African Gold (CAG) said on Thursday that TSX-listed New Dawn Mining had bought a major stake from its three biggest shareholders without the board's involvement or knowledge.

New Dawn announced on Wednesday that it had acquired 89% of CAG.

The CAG board said that it was still waiting to have discussions with New Dawn or its representatives, after the sale had occurred on Wednesday.

It had, however, received a letter requesting the appointment of two directors, representing New Dawn, to the CAG board.

The board was now seeking a meeting with New Dawn to discuss the appointments, which would be subject to Aim rules, and to understand New Dawn's plans for CAG, its businesses, employees and shareholders.

New Dawn said in a statement on Wednesday that it planned to seek representation and control of CAG's board of directors, after which it would launch a strategic review of the firm's assets and operations.

It would look into CAG's short- and long-term working capital requirements to fund the development and operation of the company's assets, and could address funding needs through a combination of internal cash flow and new debt and/or equity.

CAG has gold-mining assets in Zimbabwe through an 87,4% stake bought in Falcon Gold and a 100% interest in Olympus Gold Mines.

The acquisition would increase New Dawn's gold resource base and mining capacity in Zimbabwe to support a consolidated yearly production rate of 50 000 oz of gold to 60 000 oz of gold within the next 18 to 24 months, said New Dawn.

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