Indigenous mining firm, Engineers and Planners(E&P), has expressed interest in acquiring the shares of gold mining firm, 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 condition, as well as regulatory approvals, including Foreign Investment Review Board approval.
Cardinal Resources 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.
Fimd below details of the offer made by E&P: