PERTH (miningweekly.com) – The directors of takeover target Cardinal Resources have urged shareholders not to take any action regarding an increased offer price from suitor Nordgold.
Nordgold on Wednesday increased its offer price for Cardinal shares from 90c a share to A$1 a share, matching an offer from fellow-suitor Shandong Gold Mining.
The directors of Cardinal in September this year threw their weight behind the Shandong offer, after that company increased its offer price from an initial 70c a share to A$1 a share, valuing Cardinal at approximately A$565.6-million on a fully diluted basis.
Nordgold’s increased offer is expected to close on November 3.
Cardinal told shareholders on Wednesday that the company was considering the implications of the improved offer from Nordgold in consultation with its advisers, but has urged shareholders not to take any action.
Cardinal holds an interest in a number of tenements within Ghana, and is currently focused on the development of its Namdini project, which has an ore reserve of some 5.1-million ounces.
A 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. Namdini is expected to cost $390-million to develop.