Cardinal goes to market

GHANA gold explorer Cardinal Resources is raising up to C$13.8 million in Canada.
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Cardinal’s Ghana projects have equal exploration priority

Kristie Batten

The company has entered into an agreement with Clarus Securities, on behalf of a syndicate of underwriters, for a bought deal comprising 18.4 million shares at 65c per share to raise $12 million.

The underwriters have been granted an overallotment option to purchase up to an additional 2.7 million shares, which would take the gross proceeds to $13.8 million.

Perth-based Cardinal dual-listed in Toronto in July.

Cardinal is yet to release its September quarter report, but reported cash of A$28.5 million at the end of June.

The company said the proceeds of the offer would be used for ongoing exploration and development work at its flagship Namdini gold project and its other Ghanaian projects, as well as working capital purposes.

Cardinal recently increased the resource at Namdini to 7.4 million ounces of gold at just over 1 gram per tonne.

A preliminary economic assessment is due later this year, while the resource is expected to continue to grow.

The company’s success at the project has attracted the attention of Gold Fields, which has amassed an 11.2% stake in Cardinal since February, with the chance to reach 19.9% via the exercise of options.

“It’s a toehold in the company to see what will happen in the future, if anything,” Gold Fields CEO Nick Holland told Bloomberg in an interview overnight.

“There’s not much left to buy.”

Gold Fields is also active in Ghana, holding the Damang and Tarkwa gold mines.

The company is investing US$1.4 billion at Damang to extend the life of mine to 2024.


Cardinal shares were untraded at A63.5c, capitalising the company at $222 million. The stock traded as high as 73c earlier this month.