Norton Gold plays downs Phoenix Gold takeover suggestions
PERTH (miningweekly.com) – ASX-listed gold miner Norton Gold Fields has dismissed speculation that it was making a play for fellow-listed Phoenix Gold, after acquiring a 10.77% stake in the company.
Norton this week purchased about 39.87-million shares from Phoenix, at a price of 8.3c a share, for a total transaction value of A$3.3-million.
However, Norton said that it had no intention to make a takeover offer for Phoenix Gold at present, but added that it reserved the right to do so.
Phoenix Gold has poured its first gold from the Kintore West opencut operation, which forms part of the larger Castle Hill Stage 2 operation, in Western Australia, in October this year.
Initial mining was expected to deliver 380 000 t of mill feed, grading 2.03 g/t gold for 24 400 oz, as well as 891 000 t of heap leach feed, grading 0.6 g/t for an additional 17 130 oz.
Phoenix was developing the Castle Hill Stage 1 project in a joint venture with fellow-listed Norton Gold Fields, and the project was expected to recover about 142 000 oz of gold over an 18-month period.
Norton Gold Fields was coming off the recent A$1.8-million acquisition of the Mt Jewell gold project from fellow-listed KalNorth Gold Mines, and in September gained control of gold miner BullaBulling Gold through an 8c-a-share takeover offer.
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