The bidding war for Africa-focused miner Cardinal Resources Limited(ASX:CDV) has taken another turn with the company receiving a revised and improved proposal for an off-market takeover offer from Shandong Gold Mining (HongKong) Co., Limited.
Shandong Gold’s bid will offer to acquire all of the shares in Cardinal it does not presently own at a cash price of A$0.70 per share.
The new Shandong offer comes just over a week after Cardinal received an A$0.66 cash per share bid from Nord Gold SE.
Cardinal said its Board is now considering the improved Shandong Gold offer, together with the Special Committee and its financial and legal advisers. The company will also be engaging with Shandong Gold in respect of the revised proposal.
The company noted that the new offer remains subject to a number of conditions, including regulatory approvals in Australia (FIRB) and in China. Shandong Gold has advised that it expects to receive certain of the Chinese regulatory approvals imminently.
In light of the improved Shandong Gold Offer, and noting the competing on-market takeover offer Cardinal has asked its shareholders to take no action at this stage.
Cardinal’s joint financial advisors are Maxit Capital LP, BMO Capital Markets, Hartleys Limited and Cannacord Genuity Corp. and its legal advisors are HopgoodGanim Lawyers (Australia) and Bennett Jones LLP (Canada).
Cardinal’s flagship asset is the Namdini Gold Project in Ghana, West Africa, for which the company released a Feasibility Study in October 2019.