China's largest gold mining company Zijin Mining Group Ltd is closing in to acquire Australian gold miner Norton Gold Fields Ltd for approximately A$229 ($222 million), in an effort make a footprint on the resource-rich Australian continent.
Both the companies have signed a bid implementations deed, under which, Zijin will make a takeover offer of A$0.25 cash per share for all of the Norton shares not currently held by Zijin.
Zijin currently owns approximately 17 per cent of Norton shares which it acquired last year.
In addition, Norton shareholders will be entitled to retain A$0.02 per share special dividend without any reduction in offer price.
The offer price represents a 35.1-per cent premium to the closing price of Norton shares of A$0.185 on 29 March 2012, being the last trading day before the takeover was first announced on 3 April.
Further to the news, Norton shares jumped 12 per cent to close at A$0.235 yesterday on the Australian Stock Exchange.