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- Cardinal Resources (CDV) has raised $11.96 million as part of an off-market takeover bid by China-based mining giant Shandong Gold Mining
- Earlier this year, Shandong agreed to acquire 100 per cent of the outstanding and issued shares in Cardinal at 60 cents per share
- Despite the share raise being processed without shareholder approval, the full takeover will require a 50.1 per cent majority at Cardinal’s upcoming shareholder meeting
- The company plans to release further details regarding the Shandong takeover offer around July 22
- Cardinal Resources shares have dipped over four per cent today, trading for 59.5 cents each
Cardinal Resources (CDV) has raised $11.96 million as part of an off-market takeover bid by China-based mining giant Shandong Gold Mining.
Earlier this year, Shandong agreed to acquire 100 per cent of the outstanding and issued shares in Cardinal at 60 cents per share. Shandong’s offer followed a similar offer by Nordgold at 45 cents per Cardinal share. Through the capital raise, Shandong purchased 26 million ordinary shares as part of the offer’s bid implementation agreement.
Despite the share raise being processed without needing shareholder approval, the full takeover will require a 50.1 per cent majority at Cardinal’s upcoming shareholder meeting.
The company plans to release further details regarding the Shandong takeover offer in a bidder’s and target statement, which will be released around July 22.
The statement will outline how and why Cardinal shareholders should accept Shandong’s offer, in the absence of a competing proposal.
Thus far the company has not received any competing takeover proposal in the 14 days following Shandong’s initial offer. This means the protection period for the offer has now elapsed.
Cardinal will use the proceeds to advance its Namdini Gold Project in Ghana. The company recently released a feasibility study for the project, which outlined an ore reserve of 5.1 million ounces of gold at a cut-off grade of 0.5 grams per tonne.
Following the takeover offer’s announcement last month, Cardinal’s market share rose sharply and is currently trading two cents higher than Shandong’s proposed offer. Consequently, Cardinal was quick to point out that traders should not speculate, as no competing offer has emerged following Shandong’s proposal.
Cardinal Resources shares have dipped 4.03 per cent today, trading for 59.5 cents each at 10:49 am AEST.
