Allens Arthur Robinson (Allens) is advising China’s largest gold producer Zijin Mining Group Co., Ltd (Zijin) on its A$27.7 million investment in ASX listed Norton Gold Fields (Norton).
The deal, announced on 26 July, will see the private placement of 138.35 million shares at a price of A$0.20 per share. Norton will use the capital to help reduce its debt levels to A$50 million.
Under the deal, Shanghai and Hong Kong listed public company Zijin, which has a market capitalisation of more than US$17 billion and extensive interests across a broad range of commodities, will acquire a 17 per cent stake in Norton, which produced about 140,000 oz of gold from its operations in Western Australia in FY2010.
Partner Campbell Davidson, who led the Allens team on the matter, said the placement will be conducted in two tranches, with the second subject to shareholder and regulatory approvals.
‘It was very much a team effort to get this acquisition signed up,’ Mr Davidson said.
‘Allens worked closely with the Zijin teams in Hong Kong and the PRC, together with Zijin’s financial adviser Lincoln Crowne & Company.’
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