Growing Australian gold producer Norton Gold Fields has secured a US$25 million credit facility from Gold Mountains (HK) International Mining Company Limited, a Hong Kong-based wholly-owned subsidiary of the company’s major shareholder, Zijin Mining Group.
Norton's managing director and chief executive officer Dianmin Chen says that the securing of the line of credit from Zijin provides Norton, should Norton decide to draw down on the facility, the platform to sustainably and responsibly grow the company while reducing operating costs.
Securing the new facility follows Norton drawing down its US$105 million credit facility in November 2012, part of which funds were used to repay the pre-existing $38 million Zijin loan which was put in place as part of Zijin’s 2012 takeover offer for Norton.
“Zijin continues to be a very supportive shareholder in Norton, and the provision of the new facility further demonstrates that support,” Dianmin Chen says.
The unsecured facility has a term of 1 year from the date of the first drawdown and an annual interest rate of 6 Month LIBOR Rate plus 3%, with interest payable half yearly. Norton is entitled to draw the funds at any time from entry into the facility.