- Write by:
-
Thursday, October 29, 2020 - 3:47:53 PM
-
701 Visit
-
Print
Mining News Pro - A battle between Nordgold and China’s Shandong Gold over Cardinal Resources rumbles on as the Russian miner announced on Wednesday it would supplement its A$1-per-share bid with an off-market offer of equal value.
Nordgold, which first approached Cardinal in March with an unsolicited takeover bid, had said on Monday it wouldn’t sweeten its “final and best offer”, which matched Shandong’ s final proposal.
On Tuesday, however, Shandong said it was prepared to increase its offer by five Australian cents to A$1.05 per share if a higher offer emerged, leaving Nordgold on the ropes.
The Moscow-based gold miner, which spun out of Russian steelmaker Severstal in 2012, has responded with an off-market takeover offer for all of Cardinal’s outstanding shares. It has also vowed to provide accelerated payment terms, as long as there are no higher competing offers.
If a higher bid comes along, Nordgold said that it would increase its offer to a price that could defeat the higher competing submission, and any other rival offer from Shandong.
The Russian miner is also proposing to make an offer to certain of Cardinal option holders for their options, at the same terms as those offered by Shandong.
There is “enough evidence” of Shandong’s “misleading” and “coercive activities” to try swaying Cardinal shareholders.
“After nearly a year of protracted takeover processes, it’s very clear there will not be a third party bidder, unless it is a fabricated Chinese party, in which case the regulator would step in,” the insider, who wishes to remain anonymous, said.
Eyes on Ghana
The main reason behind the two bidders back-and-forth contest for Cardinal is the Australian miner’s 5.1 million-ounce Namdini gold asset in Ghana.
A feasibility study into the project estimates that it will produce about 4.2-million ounces of gold over a mine life of 15 years. Nearly 1.1 million ounces would be generated in the first three years of operation.
Initial capital costs for Namindi were forecast to range from $275 million and $426 million, depending on the project’s scale.
Nordgold, which acquired many of its major assets during the 2008-2009 financial crisis, claims it is not only offering better terms for Cardinal’s shareholders, but that it also has a track record of best practice operations in West Africa.
The company owns several gold mines in Africa, including Bissa in Burkina Faso and Lefa in Guinea. It also operates in Russia and Kazakhstan.
Short Link:
https://www.miningnews.ir/En/News/606757
South African diversified miner Sibanye Stillwater is discussing with lenders to temporarily lift limits on borrowings, ...
Africa-focused Montage Gold announced Thursday it has received a ministerial order granting all environmental approvals ...
Australia will spend A$566 million ($373 million) over the coming decade to map out resource deposits with a focus on ...
Newmont Corp. has no plans to expedite a decision on its $2.5 billion Yanacocha Sulfides project, dashing the Peruvian ...
China’s central bank added 60,000 troy ounces of gold to its reserves in April, official data showed on Tuesday, ...
Gold rose after mixed signals from the US, where optimism is growing the economy is on target for a soft landing as the ...
Executives from Saudi Arabian mining company Manara Minerals are in Islamabad to continue talks about buying a stake in ...
Anglo American CEO Duncan Wanblad is meeting on Friday South African mines minister Gwede Mantashe for the first time ...
Harmony Gold said on Thursday an employee working on planned rail maintenance had died at its Mponeng mine in South ...
No comments have been posted yet ...