- Cardinal Resources has raised $17.6 million to help fund the development of its Namdini gold mine in Ghana
- A feasibility study at the project is set for completion at the end of the month
- Cardinal’s share price is up five per cent today, currently sitting at 42 cents apiece
Cardinal Resources has raised $17.6 million to help fund development at its Namdini gold mine in Bolgatanga, Ghana.
Almost all of the issued shares were exercised as Cardinal reached 99.84 per cent of its target.
A resource estimate forecasts the project to host seven million ounces at a cut off grade of 0.5 grams of gold per tonne.
CEO and Managing Director of Cardinal Archie Koimtsidis said the capital raise boosts the company’s financial position as it progresses with work at Namdini.
“[The raise] considerably strengthens the company’s balance sheet and provides much improved scope to do certain long lead time activities,” Archie explained.
The funds are put in place to “ensure a quick pathway to development and and gold production” at Namdini, he added.
Archie, Non-Executive Chairman Kevin Tomlinson and Executive Director Malik Easah, have increased their holding in the company for a total of $1.67 million.
Additionally, any of the new shares issued were exercised by exisiting long-term shareholders.
“Many of the options exercised were held by long-term shareholders… we would like to acknowledge and thank these holders in particular for their continued long-term support of the company,” Archie said.
Last week, the company updated the market that its feasibility study at Namdini is set for completion for the end of the month.
The study is evaluating the proposed construction of a 9.5 million tonnes per year processing plant with a 5.1 million ounce ore reserve at the project.
Cardinal’s share price is up five per cent today, currently sitting at 42 cents apiece, as of 3:27 pm AEST.