China’s Shandong Gold Mining has moved to buy another gold junior, with ASX- and TSX-listed Cardinal Resources on Thursday announcing that it had entered into a bid implementation agreement with the Chinese miner.
Shandong has agreed to buy Australia-headquartered Cardinal Resources, which operates in Ghana, for A$0.60 a share in cash, beating the preliminary proposal announced by Nord Gold on March 16 of A$0.45775 a share.
The Shandong offer, which is a 75.5% premium to Cardinal’s 20-day unaffected volume-weighted average price and a 39.3% premium to its 20-day volume weighted average price up to June 18, values Cardinal at about A$300-million.
Cardinal CEO and MD Archie Koimtsidis said that the board had negotiated a strong offer, which would deliver significant premium to its market price.
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