ZIJIN Mining Group Co will pay A$27.67 million (US$30 million) for a minority stake in Australia's Norton Gold Fields Ltd as the Chinese miner seeks to boost gold reserves.

China's leading gold producer will buy 138.35 million shares at 20 Australian cents each, boosting its holding to 144.25 million shares, or 17 percent of the enlarged share capital of Norton, Zijin said in a Shanghai Stock Exchange filing late on Monday.

Fujian Province-based Zijin already owns 5.9 million Norton shares prior to the private placement.

The price represented a 31 percent premium to Norton's 15-day volume weighted average price, the Australian firm said in a statement yesterday. Norton's shares jumped 6.1 percent to 17.50 Australian cents in Sydney trading yesterday.

Norton said the share purchase would help the firm cut its debt.

The purchase "will help Zijin enter the Australian market, which is in line with the company's international development strategy," Huatai United Securities analyst Zhang Yong said in a note, adding that he expects Zijin to make more overseas acquisitions.

Source:ShanghaiDaily