Cardinal Resources has received a $25 million in funds from investment firm Sprott for the Namdini gold project in Ghana, West Africa.
Cardinal will primarily use the money to fund its pre-feasibility study (PFS) and definitive feasibility study (DFS) as well as for general working capital. The deal is expected to take place on or around August 17.
“We are pleased to announce third-party validation from Sprott, a leading industry participant,” said Archie Koimtsidis, chief executive officer and managing director of Cardinal.
“This facility provides Cardinal with the ability to continue to fast-track Namdini towards completion of a definitive feasibility study, anticipated in third quarter 2019, while also maximising shareholder value by avoiding unnecessary dilution.”
Cardinal will enter into a 30-month repayment term at an interest rate of 7.75 per cent and issue 4.25 million ordinary shares to Sprott, subject to shareholder approval.
Namdini has an indicated mineral resource of 6.5 million ounces (6.5Moz) of gold at 1.1 gram per tonne (g/t) over 180Mt of ore, and an inferred mineral resource of 0.5Moz of gold at 1.2g/t over 13Mt of ore. Both the indicated and inferred resource were upgraded by the company in March 2018 following an additional 15,684m of diamond drilling across 35 holes.
Dušan Petković, principal of Sprott said the company was excited by the Cardinal relationship.
“Our partnership with Cardinal is consistent with our strategy of providing innovative and flexible capital to maximise the value of exceptional projects,” he said.