Cardinal Resources has announced that it is seeking to raise C$12 million to fund exploration and development work at its Namdini gold project, in Ghana.
According to the company, its shareholders have already been informed of an agreement struck with a syndicate of underwriters under which the underwriters would purchase 18.46-million shares in Cardinal, on a bought deal basis, at C$0.65 a share.
Cardinal has also agreed to grant the underwriters an over-allotment option to purchase an additional 2.7-million ordinary shares, exercisable in whole or part at any time for a period of 30 days.
In the event that the over-allotment option is exercised in full, Cardinal’s gross proceeds from the raise would reach C$13.8-million.
The offer would close on November 14 and is subject to a number of conditions, including TSX approval.
The Namdini Mining Licence is located in the Bolgatanga, the capital town of Upper East Region close to Burkina Faso and 6 km southeast of its operating Shaanxi underground Gold Mine and 12 km from Cardinal’s Ndongo East Prospect.
Extensive mining activities all around the Namdini licence attest to the gold-bearing potential of the whole area. The project area covers roughly 660km of Paleoproterozoic greenstone belts in the upper east region of Ghana.
Aside the Namdini Mining License, Cardinal also hold the Kungongo and Bongo Reconnaissance Licences and the Ndongo Prospecting Licence, all of which are located in the Upper East Region.
The Kungongo and Bongo tenements cover part of the north-east extensions of the Bole-Bolgatanga Fault whilst the Namdini and Ndongo tenements straddle the Nangodi Greenstone Belt.