Shandong Gold Mining has raised its takeover offer for Cardinal Resources following a competing proposal from the target’s largest shareholder, Nordgold.
The Chinese gold giant upgraded its offer from 60 cents to 70 cents a share for all Cardinal shares it hasn’t already owned.
Shandong is competing with Nordgold’s unconditional cash offer of 66 cents a share announced last week.
The board of Cardinal is now considering Shandong Gold’s takeover bid, having previously recommended the shareholders to accept its preceding offer.
Though the acquisition remains subject to regulatory approvals in Australia and China, Shandong Gold assured Cardinal that it expected to receive Chinese approvals imminently.
Cardinal holds interests in tenements within Ghana, West Africa and is advancing a feasibility study for the Namdini gold project. It has an ore reserve of 5.1 million ounces and lies within the Nangodi Greenstone Belt.
Shandong Gold owns a 50 per cent stake in the Veladero joint venture project in Argentina with Barrick, while Nordgold has prospective projects in various stages in West Africa, Russia, French Guiana and Canada.