24/10/2017 - 14:37

Cardinal secures equity deal

24/10/2017 - 14:37

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Africa-focused gold explorer Cardinal Resources has attracted an equity deal through brokerage firm Clarus Securities for a $C12 million ($A12.2 million) investment in the business.

Cardinal secures equity deal
Cardinal is exploring for gold in Ghana.

Africa-focused gold explorer Cardinal Resources has attracted an equity deal through brokerage firm Clarus Securities for a $C12 million ($A12.2 million) investment in the business.

Perth-based Cardinal said Clarus, on behalf of a syndicate of underwriters, for the purchase – on a ‘bought deal’ basis – of 18.4 million shares at 65 Canadian cents each to raise the funds.

It will also accept an over-allotment to raise a further $C1.8 million, with the total proceeds to be used to continue exploration and development work at Cardinal’s Namdini gold project in Ghana.

“The shares will be offered by way of a short form prospectus to be filed in each of the provinces of Canada, other than the Province of Quebec, by way of a private placement in the United States, and in those jurisdictions outside of Canada and the United States which are agreed to by the company and the underwriters, where the shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements,” Cardinal said in a statement.

Cardinal became a dual-listed entity after seeking a TSX listing earlier this year.

The company in April raised $22.7 million from investors to fund drilling work at Namdini, with Clarus acting as lead manager.

Cardinal shares were unchanged at 63.5 cents each at the close.

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