23/08/2013 - 12:35

Norton lines up $US25m loan facility

23/08/2013 - 12:35

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Norton lines up $US25m loan facility

Norton Gold Fields has secured $US25 million in finance from a subsidiary of its major shareholder, China’s Zijin Mining Group.

The credit facility, which is being provided by Gold Mountains International Mining Company, will give Norton the capability to grow its operations while reducing operating costs, chief executive Dianmin Chen said.

“Zijin continues to be a very supportive shareholder in Norton, and the provision of the new facility further demonstrates that support,” Mr Chen said in a statement.

The facility is unsecured and has an annual interest rate of six-month LIBOR rate plus 3 per cent, payable half-yearly.

It will have a one-year term from the date of first draw-down.

The new line of finance follows Norton moving to mop up all the remaining shares it does not already own in Kalgoorlie Mining Company, after its takeover bid reached the 90 per cent acceptance mark earlier this month.

At 12:20PM, Norton’s stock was up 29.2 per cent, at $1.55. 

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