PERTH (miningweekly.com) – ASX-listed Cardinal Resources has signed a $25-million term sheet with Sprott Private Resource Lending for working capital and funding to complete preliminary and definitive feasibility studies at the Namdini gold project, in Ghana.
Cardinal on Tuesday told shareholders that the loan facility will have a 30-month repayment term and an interest rate of London interbank offered rate + 7.75%, with early repayment flexibility.
Cardinal will issue some 4.25-million ordinary shares to Sprott, subject to regulatory approval, and the facility will be secured against the company’s assets, as well as those of its wholly owned subsidiary Cardinal Namdini Mining.
“We are pleased to announce third-party validation from Sprott, a leading industry participant,” said Cardinal MD and CEO Archi Koimtsidis.
“This facility provides Cardinal with the ability to continue to fast-track Namdini towards completion of a definitive feasibility study, anticipated in the third quarter of 2019, while also maximizing shareholder value by avoiding unnecessary dilution.”
A February preliminary economic assessment into the Namdini project had proven it to be a technically and financially robust low-cost mining opportunity, that could deliver between 159 000 oz/y and 330 000 oz/y, depending on which production scenario is chosen, with development capital costs ranging between $275-million to $426-million, and mine life from 14 years, for a 9.5-million-tonne-a-year operation, and 27-years, for a 4.5-million-tonne-a-year operation.