Ghana-focused Cardinal Resources has boosted its bank balance by $C13.8 million ($14 million) to fund exploration and development at its flagship Namdini gold project.

The dual-listed stock (ASX/TSX: CDV) has signed a deal with Canadian-based investment bank Clarus Securities on behalf of a group of underwriters.

The underwriters will purchase 18.5 million Cardinal shares at 65c per share for $C12 million. The shares were purchased on a “bought deal” basis which means a share offering where an investment bank commits to buy the entire offering from the client company.

Underwriters also have option to purchase up to a further 2.8 million Cardinal shares at same price per share. If exercised in full, gross proceeds of the offering will be $C13.8 million.

Proceeds will fund exploration and development at its Namdini gold project, its other Ghanaian properties and for general working capital purposes.

The offering is expected to close on or about 14 November 2017.

Namdini, in the Ghana’s northeast, now has an “indicated” mineral resource of 4.3 million ounces and “inferred” mineral resource of 3.1 million ounces at a 0.5 grams per tonne cut-off grade.

This compares to the previous estimate of 931,000 ounces in the “indicated” category and 3.63 million ounces in the “inferred” category.

Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.

Since its discovery in 2014, Cardinal has drilled 275 holes for a total of 69,291 metres.

Namdini lies in the Bolgatanga region, 6 km south east of the operating Shaanxi underground Gold Mine and 12 km from Cardinal’s Ndongo East Prospect.

Cardinal was last trading unchanged at 63.5c and has a market cap of $223 million.

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