GhanaASX-listed gold explorer Cardinal Resources announced on Monday plans to place shares, in two tranches, to raise up to $5 million for reverse circulation and diamond drilling at the Namdini gold project, payments for mining tenement acquisitions at Namdini and to provide the company with working capital.

The location of Cardinal Resources' projects in Ghana
The location of Cardinal Resources’ projects in Ghana

The share will be placed at a price of 10 cents per share together with one free listed option for every two new shares, exercisable at $0.15 on or before 30 September 2019, to raise up to $4 158 118, while additional share placements to directors are expected to raise $841 882, the company announced on Monday.

Up to 28.1 million shares will be issued in the first tranche, which will be subject to the receipt of cleared funds to raise approximately $2.8 million, while the balance of the placement shares, of up to 21.8 million shares and all of the listed options will be issued, subject to Cardinal shareholder approval being obtained.

The directors of the company will participate in the placement to subscribe for a total of 8.4 million shares and 4. 2 million listed options for an aggregate subscription amount of $841 882.

“We are very pleased with the strong level of support from new and existing shareholders who recognise the significant potential of our projects,” said Cardinal Resources MD Archie Koimtsidis.

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