Cardinal Resources has announced a $1.6 million placement and non-renounceable rights issue of options to raise funds for continued exploration of its West African mines.
The funds raised will be used for reverse circulation (RC) drilling at Cardinals’ Namdini mine in Ghana, further mining licence joint ventures in the Bolgatanga project, and for working capital.
The company will seek to raise $900,000 by the issue of 18 million new ordinary fully paid shares to sophisticated and professional investors at 5 cents per share with one free attaching option for each share.
Cardinal directors will also receive an additional 4.88 million shares with a one-for-one free option, subject to shareholder approval.
The pro-rata non-renounceable rights issue of one option for every two shares held on the record date will raise an additional $480,000 for the company, with an options issue price of 1 cent.
The announcement comes after results at the company’s RC drill holes at the Namdini project last month revealed high-grade gold at shallow intercepts.
A further 14 RC drill holes at Namdini are expected to be completed by mid-September, with the company anticipating the continuation of the gold mineralisation both along strike and at depth.
Cardinal entered a trading halt on Monday pending detail of the capital raising.
Cardinal shares last traded at 5.3 cents per at 11am.
By Carrie Burns
