Cardinal Resources has entered a Bid Implementation Agreement with Shandong Gold Mining pursuant to which Shandong Gold has agreed to acquire 100% of the issued and outstanding ordinary shares in Cardinal at a price of A$0.60 cash per share.
This will be done by way of an off-market takeover offer.
The premium implied by the Shandong Gold Offer is a significant increase on the non-binding indicative and preliminary proposal announced by Nord Gold SE (Nordgold) on 16 March 2020 of A$0.45775.
The Shandong Gold Offer represents an attractive premium of:
- 75.5% to Cardinal’s 20-day volume weighted average price of A$0.34 up to 13 March 20201
- 39.3% to Cardinal’s 20-day volume weighted average price of A$0.43 up to close of trading on 18 June 2020, being the last trading date prior to announcement of the Transaction
- 29.0% to Cardinal’s last closing price of A$0.465
- 31.1% to Nordgold’s preliminary proposal of A$0.45775 per share announced on 16 March 2020
Cardinal’s CEO and MD, Archie Koimtsidis stated:
“The Board of Directors of Cardinal has negotiated what we consider a strong offer for our shareholders and one which delivers a significant premium to Cardinal’s market price, at a time of considerable volatility and uncertainty in global markets.
“This is an opportunity for shareholders to crystalize 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.
“The Cardinal Team is looking forward to working with Shandong Gold and its advisors to implement the transaction delivering a seamless transition as Shandong Gold embarks on the next steps towards this world class development.”
Shandong Gold Chairman, Li Guohong commented:
“We have tremendous respect for the Cardinal organization the way it has advance Namdini to its current development status.
“We are conscious of the strong working relationship Cardinal has developed with its local Ghanaian community over many years and how important the development of Namdini is to both the local community and to the country of Ghana.
“We look forward to continuing to build on this close relationship for the benefit of all stakeholders of the Namdini Project.
“Shandong Gold is currently the largest gold producer in China, and has substantial mining interests in Argentina. We have a strong track record in environment, social and corporate governance matters and in safe production, and we proudly received the “Outstanding ESG Management Reward” for Chinese Companies in 2019.
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“We will build on our positive track record and reputation as we expand our business into Ghana with this agreed Cardinal transaction. This is a positive track record and reputation we plan to uphold, as we continue to expand our operations to additional overseas jurisdictions, including our expansion into Ghana with this agreed transaction with Cardinal.
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“We look forward to working closely with stakeholders, the local communities and the Government of Ghana to deliver the Namdini Project that will create employment and deliver many significant benefits for the regional economy and Ghanaians for many years to come.”