Shandong Gold Set to Acquire Ghana-focused Cardinal Resources
A leading Chinese gold producer plans to acquire a major gold project concern in the African nation of Ghana.
Shandong Gold Mining (Hong Kong) has entered a Bid Implementation Agreement with ASX-listed Cardinal Resources for the acquisition of 100% of issued and outstanding shares at $0.60 per share, for a 75.5% premium to Cardinal’s 20-day unaffected volume weighted weighted average price.
Shandong Gold Mining is a subsidiary of state-owned Shandong Gold Group, which is under the authority of the Shandong province government and listed on the Shanghai Stock Exchange.
Cardinal Resources is at the helm of the Namdini gold project in Ghana, with a reserve of 138.6 million tonnes at 1.31 grams per tonne gold, for 5.1 million ounces.
Cardinal CEO and managing director Archie Koimtsidis said that the offer from Shandong Gold “delivers a significant premium.”
“This is an opportunity for shareholders to crystallise 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,” said Koimtsidis.