Executes US$25 Million Term Sheet with Sprott
A positive Preliminary Economic Assessment released in March this year clearly demonstrated Cardinal's flagship Namdini Gold Project in Ghana to be a low capital cost, high-margin development opportunity.
The US$25 million Facility will provide working capital and funding to complete the Preliminary and Definitive Feasibility Studies for Namdini.
Archie Koimtsidis, CEO and Managing Director of Cardinal, stated:
"We are pleased to announce third-party validation from Sprott, a leading industry participant. This Facility provides Cardinal with the ability to continue to fast-track Namdini towards completion of a Definitive Feasibility Study, anticipated in Q3 2019, while also maximizing shareholder value by avoiding unnecessary dilution.
"Importantly, the term of the Facility is 30 months and therefore provides significant flexibility for the Company as it continues to de-risk Namdini's development."
Dušan Petkovic, Principal of Sprott, commented:
"As one of the largest investors dedicated to the natural resource sector, Sprott is excited to continue its partnership with Cardinal. Our partnership with Cardinal is consistent with our strategy of providing innovative and flexible capital to maximize the value of exceptional projects."
Key terms of the Facility are as follows:
- Committed loan facility for US$25 million to be funded on the closing date
- 30-month repayment term
- Interest rate of LIBOR + 7.75%
- Early repayment flexibility
- Issue of 4,250,000 ordinary shares issued to Sprott (subject to regulatory approvals)
- The Facility is secured against assets of Cardinal and its wholly owned subsidiary, Cardinal Namdini Mining Limited.
Sprott is an alternative asset manager and a global leader in precious metal and real asset investments. Through its subsidiaries in Canada, the US and Asia, the Corporation is dedicated to providing investors with best-in-class investment strategies that include Exchange Listed Products, Alternative Asset Management and Private Resource Investments. The Corporation also operates Merchant Banking and Brokerage businesses in both Canada and the US. Sprott is based in Toronto with offices in New York, Carlsbad and Vancouver and its common shares are listed on the Toronto Stock Exchange under the symbol (TSE:SII). For more information, please visit http://www.sprott.com
About Cardinal Resources Ltd
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.
Cardinal Resources Ltd