Russian gold miner Nordgold has set its sights on Ghana-focused gold junior Cardinal Resources (ASX:CDV).

Cardinal announced today Nordgold bought a 19.9 per cent stake in the company and now wants the rest.

The company has not endorsed the offer but informed shareholders of the suitor’s advances and appointed financial and legal advisers. This was enough to send shares up 40 per cent on Monday afternoon.


The offer is another chapter in what has been a fascinating ride for the company and its shareholders. In 2012, Cardinal was a uranium explorer but picked up gold tenements in in Ghana.

By 2016 the company realised the project, Namdini, was something special. Cardinal had delineated a large mineral system 1km long, 200-300m wide, and 350m deep.

A spectacular share price run followed and Cardinal was the first Australian company to win the coveted Canadian “Thayler Lindsley” award.

Since Cardinal completed a feasibility study last year, which estimated Namdini had 5.1 million ounces of gold, it has been seeking project finance.

The company has also been drilling at another prospect just 25km away from Namdini. But now Cardinal is considering Nordgold’s offer.

While Nordgold does not have projects of its own in Ghana, it has a similar deposit — the Montagne d’Or, which contains 4.8 million ounces — in neighbouring Burkina Faso. It also has deposits in Russia, Kazakhstan, Guinea and Canada.

Earlier this month analyst Gavin Wendt tipped Cardinal as one the big producers would be watching closely.

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