Australia: HopgoodGanim acts for Norton Gold in $27.7 million raising to reduce debt
Last Updated: 27 July 2011

HopgoodGanim Lawyers are very pleased to have acted for Norton Gold Fields, a producer and explorer of gold in Western Australia, in the raising of $27.7 million at a 31% premium, to reduce debt.

Norton Gold executed a Subscription Agreement this week with Zijin Mining Group Co. Ltd, a Shanghai and Hong Kong listed public company with extensive interests in commodities, 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 with Zijin’s shareholding in Norton after the placement being 16.98%. The placement issue price of $0.20 represents a 31% 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.

About HopgoodGanim

Since 1974, HopgoodGanim Lawyers has provided sophisticated, inventive and value-based legal advice to its clients. With culture centred on business mateship, our people work together with ingrained intelligence and an authentic passion to excel in their chosen craft.

HopgoodGanim works with clients in the corporate and commercial sectors to deliver realistic solutions aligned to business needs. Headed by Managing Partner Bruce Humphrys, the firm today stands at 200 people, and is based out of Waterfront Place, Brisbane.

www.hopgoodganim.com.au

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