Shan­dong Gold Set to purchase Ghana-fo­cused Car­di­nal Re­sources

Shan­dong Gold Set to purchase Ghana-fo­cused Car­di­nal Re­sources
  • A lead­ing Chi­nese gold pro­ducer plans to ac­quire a ma­jor gold pro­ject con­cern in the African na­tion of Ghana. 
  • Shan­dong Gold Min­ing has en­tered a Bid Im­ple­men­ta­tion to agree on­ the ac­qui­si­tion of 100% of is­sued and out­stand­ing shares at $0.60 per share
  • Car­di­nal Re­sources is at the helm of the Nam­dini gold pro­ject in Ghana
  • Namdini development asset in Ghana would be on the radar of major gold miners looking to replenish ounces based on its scale and likely investment return
  • The project already has a plus-5 million-ounce reserve and resources are at some 6.5Moz.

 

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The Details

|Shan­dong Gold Min­ing (Hong Kong) has en­tered a Bid Im­ple­men­ta­tion Agree­ment with ASX-listed Car­di­nal Re­sources for the ac­qui­si­tion of 100% of is­sued and out­stand­ing shares at $0.60 per share, for a 75.5% pre­mium to Car­di­nal’s 20-day un­af­fected vol­ume weighted av­er­age price. 

Shan­dong Gold Min­ing is a sub­sidiary of state-owned Shan­dong Gold Group, which is un­der the au­thor­ity of the Shan­dong province gov­ern­ment and listed on the Shang­hai Stock Ex­change. 

Car­di­nal Re­sources is at the helm of the Nam­dini gold pro­ject in Ghana, with a re­serve of 138.6 mil­lion tonnes at 1.31 grams per tonne gold, for 5.1 mil­lion ounces. 

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Car­di­nal CEO and man­ag­ing di­rec­tor Archie Koimt­sidis said that the of­fer from Shan­dong Gold “de­liv­ers a sig­nif­i­cant pre­mium.” Archie has been instrumental in acquiring the Ghanaian projects on behalf of Cardinal and has a unique knowledge and understanding of geopolitical and operational matters relating to resource projects in West Africa.

 

“This is an op­por­tu­nity for share­hold­ers to crys­tallise their in­vest­ment in Car­di­nal at an at­trac­tive price, and I am pleased that Shan­dong Gold is com­mit­ted to get­ting on with de­vel­op­ment of Nam­dini to es­tab­lish the first long-life gold mine in the up­per east re­gion of Ghana – bring­ing many sig­nif­i­cant and long-last­ing ben­e­fits to the lo­cal com­mu­nity and Ghana,” said Koimt­sidis.

 

Namdini would provide an initial 15-year life

Cardinal Resources' Namdini development asset in Ghana would be on the radar of major gold miners looking to replenish ounces based on its scale and likely investment return, according to Cardinal Resources chief executive and managing director Archie Koimtsidis.

Koimtsidis said Namdini would provide an initial 15-year life but the company was committed to the exploration and one of the near-mine objectives was to find near-surface, high-grade satellite deposits that could feed into the operation, improve economics and extend the mine life for another 15 years.