TORONTO - New Dawn Mining Corp. (TSX:ND) said Friday that its Dalny Mine in Zimbabwe has been shut down after the project's power bill went unpaid due to what it called a "serious liquidity problem."
"As a result, the amounts owing to the Zimbabwe Electricity Supply Authority in respect of the Dalny Mine operations were not being paid on a basis acceptable to ZESA, thus causing ZESA to issue a notice of disconnection," the company said.
"As part of the shutdown, the Dalny Mine workforce is being placed on unpaid leave and the company is moving the Dalny Mine to care and maintenance."
New Dawn holds a 84.7 per cent stake in Falcon Gold Zimbabwe Ltd., which owns the mine.
The Dalny Mine employs about 900 people in Zimbabwe.
New Dawn said it plans to work with the creditors of the Dalny Mine operations to craft a plan that will address the mine's outstanding trade payables, which currently total approximately $3.1 million.
The Dalny Mine produced 1,949 ounces of gold in the quarter ended March 31, and 2,762 ounces of gold in the quarter ended June 30, 2013.
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