ASX/MEDIA ANNOUNCEMENT
28 August 2008
Majority of Bellamel shareholders accept Norton?s merger offer
Key points
?
All Bellamel directors have accepted Norton?s merger
offer
?
Bellamel shareholders acceptance at 59.48% and growing
(28 August 2008)
?
To facilitate 90% acceptance, the offer now closes on
19 September
?
Planning is advanced to develop Bellamel?s Fort
William and Navajo Chief
Projects.
Norton Gold Fields
Limited (ASX: NGF), Australia?s
fourth largest ASX-listed Australian gold producer, has received acceptances
for 53,534,039 shares in Bellamel Mining Limited, bringing acceptances under
its bid for the explorer, which has neighbouring assets to Norton?s own
Paddington mine in Kalgoorlie,
to a clear majority of 59.48%.
?I?m pleased that the
owners of a majority of Bellamel shares, including the directors, have
registered their acceptance of Norton?s offer,? said Jon Parker, Norton?s
Managing Director.
?The level of acceptances
indicates that a majority of Bellamel shareholders believe, as we do, that the
merger of our respective assets makes good business sense and is in their best
interests.?
?Acceptances need to grow
to 90% over the next three weeks; 90% is a condition of our offer. In order to
allow those who haven?t had prompt access to relevant information, the offer
closing date has been extended to 19 September 2008.
?The Bidder?s and
Target?s Statements, previously sent to Bellamel shareholders, set out the
reasons why a merger is in the best interests of both groups of shareholders. These
are accessible on Norton?s website www.nortongoldfields.com.au.
?Norton looks forward to
acceptances from the remaining Bellamel shareholders and welcoming them into
the Company? Mr Parker concluded.
Norton
has established an information line to assist Bellamel shareholders in
considering its offer for Bellamel: Tel: 1300 760 659 (local) or +61
2 8256 3392 (for callers outside Australia).
The offer closes at 7.00
pm Eastern Standard Time on 19 September 2008.
Norton is offering four of its shares
for every five Bellamel shares and applied to the ASX to have the shares
admitted to quotation on ASX by lodging an Appendix 3B which was processed by
ASX on 4 August 2008. The timing of lodgement has given rise to a legal
technicality.
We
are moving to remedy the technicality by applying to the Supreme Court of
Queensland under a mechanism prescribed by the Corporations Act. The
effect of obtaining the orders sought will be that Norton will be taken to have
fulfilled the requirements of S625(3)(c)(i) of the Corporations Act in making
its application for admission to quotation of the shares on 4 August 2008.
The
Australian Securities and Investments Commission has indicated that it does not
intend to oppose the application. Bellamel has confirmed that it endorses
the orders sought by Norton.
Norton has confirmation from the ASX
that quotation of the shares will be granted subject to the performance of
standard conditions and on a date to be decided by ASX.
Norton is of the opinion that the
granting of the orders will not prejudice Bellamel shareholders. Consequently,
Norton does not see any reason why the orders would be refused by the court.
The
application will be heard on Tuesday, 3 September 2008 at 10am.
For further information
Jon Parker
Warrick Hazeldine
Managing
Director
Purple Communications
Norton
Gold Fields Limited
+61
(0)7 3846
9200
+61 (0) 89485 1254
+61
(0)7 3846
9232
+61 (0)417 944 616
E:jparker@nortongoldfields.com.au
E: whazeldine@purplecom.com.au
Visit us at www.nortongoldfields.com.au
About
Norton Gold Fields
Norton
Gold Fields Limited is Australia?s
fourth largest ASX-listed Australian gold producer. It also has active gold,
copper, and coal exploration projects.
Norton?s
all-share offer to acquire Bellamel Mining Limited will, if accepted, add 1.68
Moz of gold to the Paddington Resources, and further extend the life of the
Paddington mine. Bellamel also has the potential to develop a 40-50,000 oz per year gold
heap leach operation. Additionally, the Bellamel properties are highly
prospective for underground development.
The Company operates the
Paddington Gold Mine near Kalgoorlie in Western
Australia and is planning to develop the Mount Morgan Mine Project
in Queensland.
Paddington has a 5Moz resource and a 3 Mtpa CIP plant capable of producing more
than 150,000 oz
of gold per year. With the planned addition of underground operations in FY2010,
production is expected to lift to 250,000 oz of gold per year.
Norton
plans to augment this with up to 40-50,000 oz of gold annually from the Mount
Morgan Mine Project.
Competent Person?s
Statement
The Mineral Resource
statement, with the exception of the Mt Pleasant Mineral Resource estimate, has
been compiled by Mr Ian Copeland who is a Member of the Australasian
Institute of Mining and Metallurgy, and qualifies as a
Competent Person as defined in the 2004 Edition of the ?Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Mr Ian
Copeland is a full time staff member of Norton Goldfields and consents to the inclusion
in the release of the matters based on the information in the form and context
in which it appears.
The Mt Pleasant Mineral
Resource estimate, with the exception of the Homestead Mineral Resource
estimate, has been compiled with the consent of Mr David Williams, who is a
Member of the Australasian
Institute of Mining and Metallurgy, and qualifies as a
Competent Person as defined in the 2004 Edition of the ?Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Mr David
Williams is a full time staff member of CSA Australia Pty Ltd and consents to
the inclusion in the release of the matters based on the information in the
form and context in which it appears. The Homestead Mineral Resource estimate
was compiled with the consent of Mr Ian Copeland.
The Mineral Resource
estimate is tabulated inclusive of Ore Reserves. Cut-off grades used to
estimate the Mineral Resource vary by deposit, ranging from 0.7g/t Au up to
1.0g/t Au. Note rounding errors may occur in the tabulation of the Mineral
Resource estimate.
Measured Resources are
0.65Mt at 1.7 g/t for 35,000
oz, Indicated Resources are 41.82Mt at 2.0 g/t for 2,717,000 oz and
Inferred Resources of 33.45Mt at 2.1 g/t for 2,271,000 oz. Proven
Reserves are 0.12Mt at 1.2 g/t for 4,500 oz, and Probable Reserves are 18.22Mt at
1.8 g/t for 1,047,700oz.
The information in this
report that relates to the Mineral Resources of Bellamel Mining Limited is
based on information provided by Mr Matthew Wood who is a Member of the
Australian Institute of Mining and Metallurgy. Mr Wood is the Chairman of
Bellamel Mining Limited. Mr Wood has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the ?Australian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves?. Mr Wood consents to the inclusion in the
report of the matters based on his information in the form and context in which
it appears.
Measured Resources are
13.30Mt at 1.15 g/t for 491,500
oz, Indicated Resources are 15.17Mt at 1.35 g/t for 658,380 oz and Inferred
Resources of 45.38Mt at 1.10 g/t for 1,628,050 oz