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Be the first with the news that moves the market- Cardinal Resources (TSX:CDV) has received a takeover bid from Hong-Kong based Shandong Gold Mining
- At a price of approximately C$0.56 per share, the offer represents a 39 per cent premium on Cardinal’s 20-day volume weighted average share price
- The offer also represents a 31 per cent premium on the proposed buyout by Nord Gold, which Cardinal received on March 16th of this year
- The package would include an immediate private placement at the buyout price, netting Cardinal approximately $11.14 million
- Cardinal Resources (CDV) is up 25 per cent and is trading at 56 cents per share
Cardinal Resources (TSXV:CDV) has received a takeover offer from Hong Kong-based Shandong Gold Mining, at a price of C$0.56 per share.
The all cash takeover offer represents a 39 per cent premium on the 20-day volume weighted average trading price.
The offer is also a 31 per cent premium on Nord Gold’s proposed buyout, offered to Cardinal on the 16th of March this year.
Cardinal also entered into an agreement with the Ghanian Government at the Start of June, whereby the Ghanian Infrastructure Investment Fund had agreed to buy the company out of its debt facility.
The proposed transaction would require an off-market takeover of Cardinal by Shandong, in which Shandong could acquire a minimum of 50.1 per cent of Cardinal’s stock.
As part of the deal, Shandong Gold will receive an approximate 19.94 million shares at the buyout price of $0.56 per share, for approximately C$11.14 million.
CEO of Cardinal Resources Archie Koimtsidis, said the board had negotiated a strong offer for shareholders, and that the proposed delivered a significant premium on the company’s market price.
“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 the development of Namdini to establish the first long-life gold mine in the upper east region of Ghana,” Archie commented.
Meanwhile, Shandong Gold’s Chariman Li Guohong said he had tremendous respect for Cardinal and its progress at the Namdini project in Ghana.
“We are conscious of the strong working relationship Cardinal has developed with its local Ghanian community over many years and how important the development of Namdini is to both the local community and to the country of Ghana,” he said.
Cardinals board has also stated that it unanimously recommends the Shandong Gold offer in the absence of a superior proposal.
Cardinal Resources (CDV) is up 25 per cent and is trading at 56 cents per share at 2:00 pm EDT.
