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Cardinal gets offer from Nordgold

27th March 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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Gold explorer Cardinal Resources has received an indicative nonbinding takeover offer from shareholder Nord Gold (Nordgold), which values the Australian company at A$227-million.

Nordgold has more than 98.4-million shares in Cardinal. This shareholding gives the company a 19.9% interest in the ASX-listed junior. The shareholding includes more than 81-million shares acquired from a subsidiary of Gold Fields at a price of 45c per share.

Nordgold has provided Cardinal with a nonbinding indicative and conditional proposal to acquire all the company’s outstanding shares for an offer price of 45.77c per share, valuing Cardinal at about A$227-million.

The offer represented a cash premium of 83% to Cardinal’s closing price on March 13, Nordgold said last week.

Nordgold is seeking access to conduct a due diligence investigation on certain key aspects of Cardinal’s Namindi gold project, in Ghana, where the company was recently granted a water extraction licence and had its resettlement action plan approved by the Ghanaian government.

An October feasibility study into the project estimated that it would 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. Namindi is expected to cost $390-million to develop.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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