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.
|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.
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.