PERTH (miningweekly.com) – Dual-listed Cardinal Resources on Tuesday announced that it would raise C$12-million to fund exploration and development work at the Namdini gold project, in Ghana.
The company told shareholders that it had struck an agreement with a syndicate of underwriters under which the underwriters had agreed to purchase 18.46-million shares in Cardinal, on a bought deal basis, at C$0.65 a share.
Cardinal has also agreed to grant the underwriters an over-allotment option to purchase an additional 2.7-million ordinary shares, exercisable in whole or part at any time for a period of 30 days.
In the event that the over-allotment option is exercised in full, Cardinal’s gross proceeds from the raise would reach C$13.8-million.
The offer would close on November 14, and was subject to a number of conditions, including TSX approval.