Phoenix raid 'a strategic play'
Norton Gold Fields has played down suggestions its $3.3 million raid on Phoenix Gold's share register could lead to a takeover, but the move comes as China's gold majors return to equity markets.
Norton is often touted as a likely bidder for near-neighbour Phoenix, but managing director Dianmin Chen yesterday stressed the share buy, which took it to an 11.3 per cent stake in Phoenix, was not a prelude to a full-blown takeover attempt.
The move comes amid signs that China Inc is again on the hunt for global gold assets.
On Monday, Norton's Chinese parent company, Zijin Mining, inked a $C81 million ($85 million) deal to buy 10 per cent of Canada's Pretium Mining, targeting its 6.9 million ounce Brucejack project in British Columbia.
In November, Zijin was linked to talks with Barrick Gold over a role in the Pascua-Lama gold project, and China's Shandong Zhaojin Group have also talked up interest in Australian and North American gold projects.
Norton has also sought to boost its Australian gold assets, losing out to local rivals in bids for Barrick Gold's WA mines.
It also inked a series of smaller deals, acquiring the Kalgoorlie Mining Company last year and Bullabulling Gold in September.
It has signed partnership deals with Excelsior Gold and with Phoenix, taking up an option to mine its Castle Hill project.
Phoenix managing director Jon Price said the company had seen renewed interest from potential suitors in recent months, though it had not engaged in any formal takeover or investment discussions.
Mr Chen admitted Norton's 11.3 per cent share buy could also be seen as a blocking stake, but added that Norton saw no immediate threats on the horizon.
"It is a strategic holding for us, which is going to give us an opportunity to work with Phoenix closely to develop the region more efficiently and more cost effectively," he said.
Norton shares closed up 0.5¢ yesterday to 13¢, with Phoenix down 0.4¢ to 9¢.
'We don't have any intention of launching a takeover bid at this stage.'"Norton managing director
Dianmin Chen *
