Norton Gold Fields says it has completed a private placement to a Hong Kong-based investment group to raise $27.7 million and reduce its overall debt.
Norton announced today Hong Kong’s Zijin Mining Group would purchase more than 138 million Norton shares, at $0.20 per share, to raise $27.67 million.
The funds will be used to reduce Norton’s debt from its current $80 million level, to around $50 million, the company said.
Shanghai and Hong Kong-lised Zijin will hold a 16.98 per cent stake in Norton once the placement is complete.
Zijin has a market capitalisation of more than $US17 nillion across a broad range of commodities.
The placement price represents a 31 per cent premium to Norton’s 15-day volume-weighted-average-price.
At close of trade today, Norton’s stock had gained 6 per cent, to 17.5 cents.
Norton managing director Andre Labuschagne said the company was pleased to welcome Zijin as a strategic shareholder.
“Zijin has a strong technical and operational background in gold mining which will complement our own expertise,” he said.
