Engineers and Planners makes offer to acquire one of Ghana’s Gold Mining Assets
Engineers and Planners, an indigenous mining firm in West Africa have expressed interest in acquiring the shares of Cardinal Resources. This brings to three the total number of bids received so far for the ASX-listed Cardinal Resources. E&P which is owned by business magnate, Ibrahim Mahama is offering A$1.05 a share in an unsolicited and off-market takeover offer.
The Ghanaian mining firm believes the acquisition of Cardinal’s Namdini project, could help the company deliver a Ghanaian owned modern mining project to create thousands of jobs and maximize revenues
A previously completed feasibility study estimated that Namdini would produce some 4.2-million ounces of gold over a mine life of 15 years, with an estimated 1.1-million ounces expected over the first three years of the operation. Namdini is expected to cost $390-million to develop.
The bid by Engineers & Planners is subject to a 50.1% minimum acceptance conditions, as well as regulatory approvals, including Foreign Investment Review Board approval.
Cardinal has urged shareholders not to take any action in relation to the Engineers & Planners bid, while the offer is being considered.
The ASX-listed company noted that throughout the first half of 2020, it was engaged in a strategic process and engaged with, and received, a number of early-stage proposals from a number of different parties, including, an early-stage asset level proposal that was expressed to be subject to contract from Engineers & Planners.
The new takeover offer effectively breaks a stalemate between suitors Nordgold and Shandong Gold Mining, who have been locked a A$1 a share offer for Cardinal after both companies issued a last and final statement.
Shandong on Tuesday increased its offer price for Cardinal also to A$1.05 a share, saying it considered the Engineers & Planners offer to be a higher competing offer.