HOPGOODGANIM Lawyers has advised Norton Gold Fields on its $27.7 million raising to reduce debt.
The Western Australian gold producer and explorer's placement will give Shanghai nag Hong Kong listed company, Zijin Mining Group, a 17 per cent stake in the company.
Norton Gold executed the subscription agreement this week with Zijin Mining for the private placement of 138,350,000 shares at a price of $0.20 per share.
Once completed, the placement will raise $27.67 million. The placement issue price of $0.20 represents a 31 per cent premium to the 15-day VWAP.
HopgoodGanim partner Michele Muscillo said: “We are very happy that we’ve been involved in this transaction and that Norton Gold has the opportunity to welcome Zijin as a strategic shareholder.”
“The placement, undertaken at a significant premium to market, highlights the underlying strength and high level of interest in the gold sector and the desire of foreign entities to take strategic stakes in producers.”
Zijin has a market capitalisation of over US$17 billion and interests in gold, copper, zinc, lead, tungsten and iron ore. In FY2010, Zijin produced over 2.2 million ounces of gold. It owns subsidiary Luminous Gold. Financial advisor Lincoln Crowne acted for Zijin in this matter.
Norton Gold is an Australian, publicly listed company which produced approximately 140,000 ounces of gold in FY2010. The funds raised from the placement will be used to reduce Norton’s debt levels.