The board of directors at Cardinal Resources Ltd. (ASX, TSX: CDV) is recommending shareholders to accept the off-market takeover offer made by Shandong Gold, which is due to expire on January 12.
Pertaining to the Shandong offer, the board notes that the Chinese gold miner has increased its aggregate acceptances in excess of 68% of all Cardinal shares.
In late December, Shandong effectively gained control over the company after receiving aggregate acceptances for over 50% of all Cardinal shares and upping its offer price to A$1.075 a share (A$1.05 a share previously).
Aside from Shandong, Cardinal had received conditional offers from other interested bidders. However, both Engineers & Planners Company Ltd. and Dongshan Investments Ltd. will not proceed with their respective bids for Cardinal shares due to the minimum acceptance conditions.
Meanwhile, the on-market takeover bid previously made by Russia’s Nordgold SE, Shandong’s closest competitor in the takeover battle, has expired.
“Whilst Nordgold holds the Namdini project in the highest regard, the price currently intended to be offered by Shandong Gold of A$1.075 is beyond that at which Nordgold feels able to justify,” Nordgold said in a statement after closing its offer for Cardinal.
Thus, Shandong is now the only remaining bidder for Cardinal, with a relevant interest in over 68% of Cardinal’s shares.
Cardinal’s flagship asset is the Namdini gold project in Ghana, which contains a published ore reserve of 5.1 million ounces, including a proven reserve of 400,000 ounces and a probable reserve of 4.7 million ounces.