06/04/2017 - 11:03

Cardinal in $23m raising, TSX listing

06/04/2017 - 11:03

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Gold explorer Cardinal Resources has announced plans to raise up to $22.7 million to fund ongoing drilling work at its Namdini project in Ghana, while also putting forward plans to dual-list on the Toronto Stock Exchange.

Cardinal in $23m raising, TSX listing
Cardinal is exploring for gold in Ghana.

Gold explorer Cardinal Resources has announced plans to raise up to $22.7 million to fund ongoing drilling work at its Namdini project in Ghana, while also putting forward plans to dual-list on the Toronto Stock Exchange.

Perth-based Cardinal said it would raise the funds through the placement of up to 45.5 million shares at 50 cents each.

“The funds raised will be applied primarily to fund further RC and diamond drilling at the Namdini gold project in Ghana, exploration of the company’s other Ghanaian properties, provide capital for any potential payments in relation to acquiring tenements located adjacent to Namdini, technical studies in respect of Namdini, and for working capital,” it said.

Hartleys acted as global lead manager to the placement, with Clarus Securities acting as lead manager in North America and Canada.

Cardinal also announced today that it had applied for the listing of its shares on the TSX, after filing a preliminary non-offering prospectus.

Managing director Archie Koimtsidis said the TSX listing plans were largely driven by strong interest in its Namdini project by Canadian and North American institutional investors.

"Given that the maiden resource has now been strengthened with the inclusion of the “updip” and “southern extension” drilling, we believe the Namdini project has strong potential for further growth through continued drilling along strike and at depth," he said.

“We believe that the TSX listing represents an important step in building the profile of the company and expect the listing will expand the knowledge base and understanding of Cardinal’s potential.”

Shares in Cardinal were unchanged at 57 cents each at 10:40am.

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