02/03/2010 - 09:16

Chinese firm buys into Norton Gold

02/03/2010 - 09:16

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Less than five months after going to market for extra equity, miner Norton Gold Fields today says it has raised $20 million through a private placement to a Chinese entity.

Less than five months after going to market for extra equity, miner Norton Gold Fields today says it has raised $20 million through a private placement to a Chinese entity.

In a statement today, Norton said it had placed 79.83 million shares at a premium of 25 cents each to China Precious Metal Resources Holdings (CPMRH).

Shares in Norton were still in a trading halt at 11:52 AEDT, and last traded at 17.5c.

The private placement gives CPMRH a 14.6 per cent shareholding. The Chinese company will also be entitled to nominate a representative to the Norton Board.

"This raising further strengthens the Company's balance sheet and gives us some flexibility going forward in both operational and corporate aspects of the business," chairman Anthony McLellan said.

"I welcome China Precious Metal Resources to our register and look forward to working with them and all our other shareholders to build an outstanding gold company."

In October last year, Norton raised $40.5 million in a placement to sophisticated investors in Canada, US, UK and Hong Kong.

Funds raised from that placement were used to expand the Paddington gold mine in Western Australia.

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