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Norton backs Chinese goldminer takeover offer

ABCABC – 3 hours ago




The chairman of WA miner Norton Goldfields is urging shareholders to accept a takeover offer by China's largest goldminer.

This is despite Zijin Mining Group being accused of trying to cover up a toxic waste spill in China in 2010.

Norton's chairman Tim Prowse says he intends to accept Zijin's $229 million offer.

Norton's shares have been under performing and it is in heavy debt.

The company also says it is confident Zijin will operate safely if the bid is successful.

In 2010, toxic waste spilled from one of Zijin operations in China, killing large numbers of fish.

Chinese media reported the central government's media watchdog found Zijin officials tried to bribe journalists to cover up the incident.

Zijin says it conducted an internal investigation into the accusations and found no evidence to support them.