The unconditional on-market takeover offer from Nord Gold values 100% of Cardinal Resources at AUD347m ($241m)

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Cardinal Resources gets takeover offer Norgold. (Credit: aymane jdidi from Pixabay)

UK gold mining company Nord Gold (Nordgold) has launched a takeover bid to acquire the remaining 81.29% stake it didn’t own already in Australia-based Cardinal Resources for AUD0.66 ($0.46) per share.

The unconditional on-market takeover offer values 100% of Cardinal Resources at AUD347m ($241m).

The Australian company is into the exploration and development of gold assets in Ghana.

It is currently focused on the development of the Namdini Project in Ghana, which has proved and probable ore reserve of 5.1Moz. The Australian company is advancing the feasibility study of the gold project.

Cardinal Resources is also undertaking exploration programmes at the Bolgatanga and Subranum projects in Ghana.

Currently, Nordgold is the largest shareholder in the Australian company with a stake of 18.71%, of which 16.4% was acquired in March 2020 from Corporate International, a subsidiary of Gold Fields, for AUD0.45 ($0.31).

Nordgold has 10 operating assets located across two continents – Asia and Africa. In West Africa, the company is active in Burkina Faso and Guinea.

The UK-based gold miner’s portfolio also includes projects in feasibility study and in advanced exploration stages.

Nordgold claimed that its proposal gives Cardinal Resources’ shareholders an attractive opportunity to secure clear, certain, and immediate value for their shares.

The company said that it had obtained approval to move ahead with the offer from Australia’s Foreign Investment Review Board. Besides, Nordgold said that it had been given a change of control approval pertaining to the Namdini Project from the Ghanian government last month.

Nordgold CEO comments on the takeover offer for Cardinal Resources

Nordgold CEO Nikolai Zelenski said: “Nordgold, which is already Cardinal’s largest shareholder, is committed to operating in West Africa, and has the project development expertise and robust balance sheet necessary to underwrite the successful construction and commissioning of the Namdini project, to the benefit of the local community and all stakeholders.

“Having received all relevant approvals, including regulatory approvals in Australia and Ghana, Nordgold is able to make its Offer free of all conditions and with attractive expedited settlement terms.”

Cardinal Resources said that the offer from Nordgold is unsolicited and will have to be considered in detail by its board. For now, it has asked its shareholders not to take any action regarding the offer.

The Australian company had already entered into a bid implementation agreement with China-based Shandong Gold, which was announced last month, under which the latter proposes to acquire it for AUD0.6 ($0.42) per share or around $221m.