Shandong these days elevated its bid for the ASX and TSX-listed Cardinal from the 60c a share offered in June this year, to 70c a share, after a competing bid from shareholder Nordgold emerged, which offered Cardinal shareholders 66c in cash for every of their shares held.
Cardinal informed shareholders on Monday that after careful consideration of the revised Shandong Gold provide and Nordgold’s unconditional on-market takeover offer, the directors have unanimously recommended that shareholders receive the revised Shandong Gold offer and reject the Nordgold bid.
The revised provide from Shandong Gold valued Cardinal Resources at around A$395-million on a entirely diluted basis, and represented a 6.1% top rate to the Nordgold bid.
“While the board acknowledges that the Nordgold bid is unconditional, based totally on the informational on hand at the date of this announcement, the board has no reason to trust that the conditions for the revised Shandong Gold offer, which encompass a 50.1% minimum acceptance condition and Foreign Investment Review Board approval, cannot be comfy within a practical timeframe,” the enterprise told shareholders.
“Cardinal is aware that Shandong Gold has obtained all essential Chinese regulatory approvals, with the end result that the revised Shandong Gold offer is no longer conditional on any Chinese regulatory approvals.”
Cardinal holds an interest in a quantity of tenements within Ghana, and is currently targeted on the improvement of its Namindi project, which has an ore reserve of some 5.1-million ounces.