Recommended cash offer for acquisition of Cardinal Resources by Shandong Gold

Offer price corresponds to a 75.5% surcharge on the 20-day unaffected volume-weighted average price – corresponds to the 20-day volume-weighted average price until close of trading on March 13, 2020, Cardinal’s last trading day, before a non-binding and indicative offer from Nord Gold SE was announced.

Cardinal Resources Ltd. (ASX / TSX: CDV) (Cardinal or the company) announces that the company has entered into an agreement with Shandong Gold Mining (Hong Kong) Co, Ltd., a subsidiary of Shandong Gold Mining Co, Ltd) (Shandong Gold) has completed the implementation of a bid implementation agreement (BIA) whereby Shandong Gold has committed to purchase 100% of Cardinal’s outstanding and outstanding common stock in cash at a price of AUD 0.60 per share through an over-the-counter takeover bid (the Offer from Shandong Gold or the transaction).

 

The surcharge implied in Shandong Gold’s offer represents a significant plus over the non-binding indicative and preliminary offer from Nord Gold SE (Nordgold) of March 16, 2020 of AUD 0.45775 per share.

 

Recommended takeover bid by Shandong Gold

Cardinal’s Board of Directors has carefully reviewed Shandong Gold’s offer in consultation with the special committee set up in connection with the strategic process and its financial and legal advisors. The Cardinal Board of Directors unanimously recommends all Cardinal shareholders to accept Shandong Gold’s offer if there is no superior offer.