Photo by: Reuters
PERTH (miningweekly.com) – Gold miner Norton Gold Fields has launched a review of the namesake asset of takeover target Bullabulling Gold, warning that the decision to proceed with the mine would depend on the gold price and market conditions.
The review seeks to identify the most effective means of exploring and developing the project, but Norton noted that any decision to progress the Western Australian mine would be subject to economic conditions.
Norton has gained a relevant interest of more than 75% in fellow-listed Bullabulling Gold, prompting the miner to seek a delisting of Bullabulling’s shares from the ASX and the Aim.
Norton had also extended the offer period until September 15, urging the remaining Bullabulling shareholders to accept its 8c-a-share offer.
Norton noted that if the ultimate outcome of the review was to defer or delay a decision to proceed with the advancement of the Bullabulling mine for a “material period of time”, Bullabulling shareholders who elected not to accept the offer should be made aware that such a delay could adversely impact their ability to realise value for their shareholding in the company.
The gold miner also noted that if Norton did not obtain a relevant interest of 90% in Bullabulling shares, and the company was delisted from the ASX and Aim, there would be no liquid market for the sale of Bullabulling shares, and the remaining shareholders would only be able to sell their shares off market.