5moz Cardinal Resources in the middle of a China vs. Russia bidding war as gold soars
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Gold prices are continuing towards all time highs with spot gold putting on another 1.7 per cent in after-hours trade to $US1,872.53 an ounce.
With gold seemingly on track to $US2,000 an ounce and beyond, the stage is set for the takeover battle for Ghana-focused Cardinal Resources (ASX:CDV) to heat up further.
Just days after Russia’s Nord Gold increased its all-cash takeover offer for Cardinal to 66c per share – valuing Cardinal at about $347m, its Chinese rival Shandong Gold Mining has returned fire with a 70c per share offer.
However, it is unclear at this stage if Shandong’s offer of $11.9m in interim funding is still on the table.
While Cardinal’s management had previously recommended Shandong’s 60c all-cash offer that trumped Nord Gold’s original 45.775c offer, it has now opted to recommend that shareholders take no action instead.
Both companies were drawn to Cardinal in a bid to pick-up its 5.1 million ounce Namdini gold project in Ghana for which the Australian company has just received parliamentary ratification for an expanded 63sqkm mining licence for an initial 15-year term.
The high gold price has also proven to be irresistible for Traka Resources (ASX:TKL), which has reached an agreement with Galaxy Resources (ASX:GXY) to exchange its free-carried 20 per cent interest in the Mt Cattlin North Tenements for 100 per cent of the gold and other mineral potential on the tenement area.
It will hand over full rights to the lithium pegmatite minerals to Galaxy.
Prior to the more recent interest in lithium, the Mt Cattlin North Tenements had a long history of gold mining and exploration with 18 separate small-scale mines that mined a reported 23,006 tonnes of ore grading 24.56 grams per tonne gold.
Traka says that tenements host kilometre-long mineralised shear zones and quartz-veined intrusives with high-grade gold shoots and numerous drill hole intersections that present targets for immediate follow-up.