ASX and TSX-listed gold explorer Cardinal Resources has advised its shareholders to take no action on the increased takeover offer tabled by privately-held gold miner Nordgold.
Read more: Cardinal Resources takeover bid heats up
Nordgold upped the unconditional on-market cash takeover offer for Cardinal from A$0.66 to $0.90 cash per share.
Cardinal’s other suitor, Shandong Gold, is offering $0.70 in cash for each share not already held.
On 18 June, Cardinal Resources and Shandong Gold entered into a bid implementation agreement in which Shandong could acquire 100% of the issued and outstanding ordinary shares in Cardinal at a price of $0.60 cash per share, by way of an off-market takeover offer. The offer has a 50.1% minimum acceptance condition as well as regulatory approvals, including Foreign Investment Review Board (FIRB) approval, which has already been granted, and approvals of certain Chinese regulatory bodies.
Cardinal told shareholders on 2 September that while the A$0.90 cash per share offered by Nordgold is higher than the offer made by Shandong Gold, Cardinal has certain obligations under the bid implementation agreement signed with Shandong, including matching rights in favour of Shandong Gold, amongst others.
The company therefore advised its shareholders to take no action at this time, until a further update is issued.
Nordgold’s offer will remain open for acceptance until the close of trading on 10 September 2020, unless extended or withdrawn by Nordgold.
Cardinal 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.