Norton completes coal asset sale

Tuesday, 15 March, 2011 - 12:27
Category: 

Norton Gold Fields has completed the sale of its Sienna and Electra coal projects in Queensland to coal magnate Nathan Tinkler's Boardwalk Resources subsidiary, Boardwalk Sienna.

The $30 million sale and purchase agreement was first announced on December 17.

Norton managing director Andre Labuschagne said the company was able to extract significant value from a non-core asset, and now had a 100 per cent focus on gold.

"To ensure an efficient use of Norton's surplus cash, we will use just over $13 million to immediately reduce our debt to approximately $85 million," he said.

At 12:24PM (WST) Norton shares had shed 5.7 per cent, to trade at $0.16.