Australian gold producer Norton Gold Fields Limited
(ASX:NGF) has launched an off-market $24 million bid for Perth-based Bullabulling Gold Limited (ASX:BAB, LON:BGL).
Norton Gold Fields is a subsidiary of Chinese state-owned Zijin Mining Group and is offering dual-listed Bullabulling Gold 7 cents per share.
The offer represents a 30 per cent premium to Bullabulling Gold’s last closing price of 0.054 ahead of the announcement on Thursday.
Norton Gold Fields says it has the financial capacity and management experience to advance Bullabulling's main asset in Western Australia to production quickly and cost effectively.
Ahead of the announcement being released on the eve of the Easter long weekend shares in Norton Gold Fields lost 12 per cent to end at $0.11.
Shares in Bullabulling Gold fell 5.26 per cent ahead of the news in Australia but soared 25 per cent in London following the announcement.
Norton Gold Fields doubled its net profit to $22.5 million in the 2013 financial year over the same period the average spot price for gold declined 28 per cent.
