Oversubscribed Capital Raising to Expedite Drilling
Perth, Mar 2, 2016 AEST (ABN Newswire) - Cardinal Resources Limited (
ASX:CDV) ("the Company") is pleased to announce that it has received commitments from institutional and professional investors in respect of a placement to issue 45,238,742 fully paid ordinary shares ("Shares") at 12 cents each ("Placement"). Hartleys Limited was the sole Lead Manager in respect of the Placement.
HIGHLIGHTS
- Placement of 45,238,742 shares at 12 cents per share
- Additional placement to three Directors of 1,750,000 shares at 12 cents per share (subject to shareholder approval)
- Funds raised will be used to expedite diamond drilling at the Namdini Gold Project and for working capital
In addition three directors of the Company (namely, Messrs Archie Koimtsidis, Malik Easah and Mark Thomas) will, subject to shareholder approval, subscribe for a total of 1,750,000 Shares on the same terms as the Placement ("Directors' Placement").
The funds raised will be applied towards expediting diamond drilling at the Namdini Gold Project, which will underpin an initial exploration target that is targeted for mid-year, and for working capital.
Archie Koimtsidis, Managing Director of Cardinal, said: "We are very pleased with the strong level of support from a broad range of domestic and international institutional and high net worth investors who recognise the significant potential of our projects, particularly our Namdini Gold Project."
42,666,642 Shares to be issued under the Placement will be issued under the Company's existing capacity to issue securities provided in ASX Listing Rules 7.1 and 7.1A ("Tranche 1").
2,572,100 Shares to be issued in the Placement and the 1,750,000 Director placement shares will be issued subject to shareholder approval being obtained at a meeting to be held in April 2016 ("Tranche 2").
The Company will send a notice of meeting to shareholders in due course with respect to, amongst other things, the approvals required for the Tranche 2 placement.
About Cardinal Resources Ltd
Cardinal Resources Ltd (ASX:CDV) (TSE:CDV) (OTCMKTS:CRDNF) is a West African gold exploration and development Company that holds interests in tenements within Ghana, West Africa.
The Company is focused on the development of the Namdini Project with a gold Ore Reserve of 5.1Moz (0.4 Moz Proved and 4.7 Moz Probable) and a soon to be completed Feasibility Study.
Exploration programmes are also underway at the Company's Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) Projects.
Cardinal confirms that it is not aware of any new information or data that materially affects the information included in its announcement of the Ore Reserve of 3 April 2019. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.
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