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Cardinal Resources (ASX:CDV) - Co Founder, Managing Director & CEO, Archie Koimtsidis
Co Founder, Managing Director & CEO, Archie Koimtsidis
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  • West African gold-explorer, Cardinal Resources (CDV) has suspended all of its workforce’s international travel
  • Meanwhile, on the ground in Ghana, the workforce has been reduced to essential workers only
  • Fieldwork has been scaled back for at least the next four weeks at the Namdini project
  • In late February, Cardinal announced it had repaid its US$8 million loan (approximately A$13 million) to Sprott Private Resources Lending
  • However, given the unexpected downturn in global equity markets and the uncertainty around COVID-19, the company has redrawn US$5 million
  • In the meantime, Cardinal’s largest shareholder, Norgold, is completing due diligence as it considers cementing its previously announced takeover bid
  • Cardinal Resources is up 4.48 per cent on the market this afternoon, trading for 35 cents apiece

West African gold-explorer Cardinal Resources (CDV) has suspended all of its workforce’s international travel in response to COVID-19.

Personal and Wellbeing update

Following advice from the World Health Organisation (WHO) and the Australian, Ghanaian and Canadian Governments, Cardinal has put in measures that protect the health and safety of the workforce.

At its Ghana plants, the workforce has been reduced to essential workers only. According to WHO’s report, on March 28, there had been 138 confirmed cases and four deaths from COVID-19 in Ghana.

Cardinal holds an interest in mining tenements within Ghana, West Africa. It is also developing the Namdini Gold Project.

While fieldwork has been scaled back for at least the next four weeks, the Namdini project team is still working on adding value to the project.

In the past couple of months, the company has received its key water extraction permits and approval from the Government for its Resettlement Action Plan, which will have significant health and wellbeing benefits for the local community.

Sprott Loan Facility

In late February, Cardinal announced it had repaid its US$8 million loan (approx. A$13 million) to Sprott Private Resources Lending.

Given the unexpected downturn in global equity markets and the uncertainty around COVID-19, the company has redrawn US$5 million (approx A$8 million) from the loan.

Cardinal has agreed to pay a redraw fee, as well as apply a 5 per cent redemption premium, on all future repayments on the facility.

The company is expecting the loan facility will be completed prior to the due date on March 1, 2021.

Nordgold Takeover

Earlier this month, the company received a takeover offer from its largest shareholder, Nordgold. Due diligence is being currently completed.

Nordgold has signed a confidentiality agreement with Cardinal, giving it access to the Cardinal data room to allow it to complete the due diligence.

The U.K. company already has a 19.9 per cent stake in Cardinal, but has not made any formal offer to purchase the company.

Cardinal Resources is up 4.48 per cent on the market this afternoon, trading for 35¢ apiece at 2:54 pm AEDT.

CDV by the numbers
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