Cardinal Resources has given Shandong Gold the deadline of 7 September to match the increased takeover offer tabled by Nordgold.
Nordgold on 2 September increased its unconditional, on-market offer for Cardinal shares from A$0.66 to $0.90 a share – an offer which would remain open until 10 September.
Nordgold’s latest offer is on the back of Shandong’s conditional off-market takeover offer of $0.70 a share.
Given the matching rights afforded to Shandong under the provisions of the bid implementation agreement which Cardinal signed with Shandong on 18 June, Shandong Gold has the opportunity (but not the obligation) to provide a matching or superior proposal to the revised Nordgold bid.
Read more: Cardinal Resources takeover bid heats up
Cardinal Resources continues to advise shareholders to take no action at this time in relation to the revised Nordgold takeover bid while the relevant processes are followed.
As a result of the revised Nordgold takeover bid and the matching rights process currently being undertaken, the Cardinal directors who own or control shares in Cardinal will not be accepting the Shandong bid, but otherwise maintain their acceptance intention until Shandong’s matching rights deadline.
Cardinal Resources is focused on the development of the Namdini gold project in Ghana which has a proven and probable ore reserve of 5.1 Moz and is now advancing the feasibility study.
The company is also advancing exploration programmes at its Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) projects.