Nordgold increases offer for Cardinal
PERTH (miningweekly.com) - Russian suitor Nordgold has increased its offer price for ASX-listed Cardinal Resources to A$1.05 a share, again matching an offer from Chinese suitor Shandong Gold Mining.
Nordgold said on Friday that its increased offer price was an unconditional on-market all-cash offer, which will close on December 23.
Cardinal has urged shareholders not to take any action with regard to the increased Nordgold offer, pointing out that it had obligations under a previously inked bid implementation agreement with Shandong Gold.
The A$1 a share stalemate between Shandong and Nordgold was broken last month when a third bidder emerged for Cardinal Resources.
Ghanaian firm Engineers & Planners Company has formally launched a A$1.05 a share off-market takeover offer for Cardinal, in an effort to gain ownership of Cardinal’s Namdini gold project, which is expected to produce some 4.2-million ounces of gold over a mine life of 15 years, with an estimated 1.1-million ounces expected over the first three years of the operation. Namdini is expected to cost $390-million to develop.
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