Zijin ups Norton takeover offer to $41m

Zijin Mining Group has increased its offer to buy all the shares it doesn’t own in Norton Gold Fields to 25 cents a share, boosting the value of the deal to about $41 million.

It follows news last week that a shareholders meeting to vote on the proposed scheme of arrangement was adjourned by the Perth gold miner’s chairman Jinghe Chen until June, despite Zijin increasing its offer price from the original 20 cents a share offer to 23 cents.

The original deal was valued at about $33 million.

“The increase follows discussions with certain parties who have committed to support the scheme at this price,” the company said in a statement.

Norton was advised by Zijin that the revised offer price was its best and final offer.

“Zijin has also offered to increase the consideration payable to Drock International for the cancellation of the OPT1 options from 5.5 cents to 7.5 cents per option,” Norton said.

Zijin is proposing to wholly acquire Norton by buying the remaining 17.6 per cent stake it doesn't already own in the business.

The adjourned scheme meeting will take place on June 12.

Shares in Norton were 6.5 per cent higher to 24.5 cents each at 1:15pm.