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WFW advises Norseman Gold PLC on placing of shares and secured convertible loan notes to raise £12m for Norseman Gold Project

27 October 2011

Watson, Farley & Williams LLP (“WFW”), a leading international law firm, is pleased to announce that it has advised AIM and ASX-listed Australian gold production and exploration company Norseman Gold PLC on the placing of secured convertible loan notes to raise approximately £5.1m, and the conditional placing of new ordinary shares at five pence per share to raise approximately £6.9m, for the Norseman Gold Project.

The Norseman Gold Project is a gold mining project based in Western Australia in the Norseman-Wiluna greenstone belt, 725km east of Perth and 186km from Kalgoorlie.

The Convertible Loan Notes bear interest at a rate of 10% and, subject to ASX approvals and the approval of Norseman shareholders at the Company’s forthcoming AGM, are convertible by the holder at a price of six pence per share and carry a share purchase warrant entitling the initial note holder to acquire further ordinary shares in the Company at a price of 12 pence per share. The Convertible Loan Notes will be secured by a second ranking fixed and floating charge and a second ranking mining mortgage over certain mining leases and other assets relating to the Norseman Gold Project, each granted by the Company’s subsidiary Central Norseman Gold Corporation Limited.

Jan Mellmann, partner and head of Natural Resources, led the team and was assisted by Corporate solicitor Jenny Hodges and Project, Commodities & Export Finance partner Michael Kenny. Fairweather Corporate provided Australian law advice, while Ocean Equities Ltd acted as broker on the placing of the convertible notes.

Jan Mellmann, partner and head of Natural Resources at WFW comments: “We assisted Norseman on its admission to AIM in 2007 and so we were delighted to have advised Norseman on this placing to raise further funds for the Norseman Gold Project. This transaction was concluded in less than two weeks which demonstrates our ability to combine our strengths in complex cross-border transactions involving mining, capital markets and project/commodities financings. We look forward to continuing our relationship with Norseman going forward.”