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Norton Gold Fields secures $25m credit

23rd August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed gold miner Norton Gold Fields has secured a $25-million credit facility from Hong Kong-based Gold Mountains International Mining Company.

Gold Mountains is a subsidiary of Norton’s largest shareholder Zijin Mining Group, which launched a takeover of Norton in 2012.

Norton MD and CEO Dianmin Chen said this week that securing the line of credit from Zijin provided Norton the platform to sustainably and responsibly grow the company, while reducing operating costs.

The new facility followed Norton drawing down its $105-million credit facility in November last year, which partly went to repay an existing $38-million Zijin loan, which had been put in place as part of the takeover offer.

The new unsecured facility had a term of one year from the date of first draw-down and an annual interest rate of six-month London Interbank Offered Rate (Libor) rate plus 3%, with interest payable half yearly.

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

Earlier this month, Norton reported a 76% drop in its net profit after tax for the first half of the year, with the company recording a net profit of A$773 000. Revenue for the period reached A$126.5-million.

Edited by Creamer Media Reporter

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