G'day rennies,As I understand the Merrill Lynch refinancing deal...

G'day rennies,

As I understand the Merrill Lynch refinancing deal (ASX 18 April 2011), the $30 million payment is a voluntary early repayment not a compulsory one. Therefore Norton Gold Fields won't necessarily have to raise capital prior to September 2011, albeit if they don't, their interest rate on outstanding debt will increase by "a 3% step-up" and an extra 1% will apply to the "4% payable in kind (PIK)". Obviously, it will be in Norton's interest to repay the $30m early as this will put a "big dent" in their $80m outstanding Note.

In the absence of any advice to the contrary, this quarter should see better production/better grades with lower costs now that the Homestead underground mine and the Navajo Chief open-cut mine are supplying ore to the Paddington mine.

With an increasing Australian gold price, cash still in the bank, $15m yet to come from the coal sales (2012 and 2013), and a restructured Board, NGF might just prove all of the pundits wrong.

Regards,

Goggo