Kalgoorlie accepts loan from suitor
PERTH (miningweekly.com) – Takeover target Kalgoorlie Mining has accepted a A$700 000 loan fund from suitor Norton Gold Fields to fund the care and maintenance of its Bullant gold mine.
In April, Norton launched a takeover offer for Kalgoorlie, offering 0.054 of its own shares, and 0.054 options for every Kalgoorlie share held, exercisable at 27c an option before the end of April 2015, and 0.024 options for each listed Kalgoorlie option, exercisable at 25c a share, before the end of May next year.
The offer represented a 55% premium to Kalgoorlie’s shares, based on a 90-day volume-weighted average price of Norton’s shares, and an independent valuation of the Norton options.
Kalgoorlie said on Friday that the loan funding agreement was negotiated on an arm’s-length, commercial basis.
The gold junior would be able to draw down the full amount, at an interest rate of 11%, at any time before June 13, 2014. Under the terms of the agreement, the funds had to be used for the care and maintenance of the Bullant project, as well as to meet corporate expenses.
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