Update in Respect of Competing Takeover Offers for Cardinal

TORONTO, Oct. 20, 2020 (GLOBE NEWSWIRE) -- Cardinal Resources Limited (ASX / TSX: CDV) (“Cardinal” or “the Company”) is providing an update to shareholders in reference to the ongoing takeover offers for the Company by Shandong Gold Mining (HongKong) Co., Ltd. (“Shandong Gold”) and Nord Gold S.E. (“Nordgold”).

Status of Takeover Bids

Cardinal notes the recent extension by Nordgold on 15 October 2020 of its unconditional on-market A$0.90 per share offer (“Nordgold Offer”) to the close of trading on the ASX on 3 November 2020 (unless further extended or withdrawn).

Cardinal also notes the Second Supplementary Bidder’s Statement lodged by Shandong Gold on 19 October 2020 in relation to its recommended and unconditional off-market A$1.00 per share takeover offer (“Shandong Gold Offer”). Pursuant to the Second Supplementary Bidder’s Statement, Shandong Gold has now declared the A$1.00 cash per share offered to be Shandong Gold’s best and final offer price in the absence of a higher competing offer. The practical effect of this statement is that unless there is a higher competing offer to the Shandong Gold Offer (whether from Nordgold or a third party), Shandong Gold cannot increase its offer price.

The Nordgold Offer continues to be materially inferior to the A$1.00 cash per share offered by the Shandong Gold Offer. Cardinal notes that while Nordgold has the right to continue to extend the Nordgold Offer, the most recent extension announcement is the 4^th successive extension by Nordgold as the “Underbidder” and the 2^nd extension following the Shandong Gold Offer becoming unconditional.

Cardinal considers that the lack of any price increase or any other updated guidance from Nordgold as to its current intentions with respect to Cardinal will result in unwarranted delays to the progression of the Namdini Gold Project and will continue to frustrate the decision making process of Cardinal’s shareholders.

Over 7 months have elapsed since the initial unsolicited, indicative, conditional and non-binding proposal from Nordgold was originally received in March 2020 when Cardinal’s share price was trading at a 3 year low during the early stages of the COVID 19 pandemic.

Cardinal’s permitted Namdini Gold Project is ready for development. Cardinal’s 2019 feasibility study has shown the superior economics of the Namdini Gold Project using a USD$1,350 gold price (without taking into account the far stronger gold price at present).¹ Work on the ground and detailed engineering works are poised to commence. The Government of Ghana continues to be fully supportive of moving the Namdini Gold Project towards production and, being a permitted project, progress is now vital.