PERTH (miningweekly.com) – The CEO of Russian gold miner Nordgold has urged shareholders of takeover target Cardinal Resources to carefully consider their options in the race for the Namdini gold project, in Ghana.

Nordgold is in a stand-off with Chinese suitor Shandong Gold Mining, having each lobbed a A$1 a share final offer for ASX-listed Cardinal Resources.

The Australian Takeovers Panel has been approached by all invested parties to intervene in the melee, with Nordgold requesting affirmation that Shandong would be unable to increase its A$1 a share final offer, while Shandong is hoping to be granted leave to do just that.

Both Nordgold and Shandong Gold Mining are stuck at the A$1 a share threshold unless a superior offer emerges from a third party.

While Cardinal has consistently urged shareholders to accept the Shandong Gold Mining offer, Nordgold CEO Nikolai Zelenski has urged Cardinal shareholders to consider the future of the Namdini project.

“I believe we are the more attractive buyer for this project, because I believe we will develop it better. We have a strong presence and track record in this region,” Zelenski told Mining Weekly Online, pointing out that the company had developed four mines in neighboring Burkina Faso and Guinea.

“This is a region in which we feel very comfortable operating, we understand the culture, and we have a lot of executives that have previously worked in Ghana.

“The engineering, procurement and construction contractor that Cardinal is using, is one that we have used on two of our own mines, so the continuity will be much more efficient and I think that is important for Ghana and the local community,” Zelenski added.

A previously completed feasibility study into the project estimated that it would produce some 4.2-million ounces of gold over a mine life of 15 years, with an estimated 1.1-million ounces expected over the first three years of the operation. Namdini is expected to cost $390-million to develop.

Nordgold is hoping to quickly complete permitting for the project, allowing construction to take place soon after.

Zelenski told Mining Weekly Online that in commercial terms, the Nordgold offer was "slightly more attractive" than the Shandong Gold Mining offer, considering that the Russian firm would also be launching an off-market takeover offer for all the outstanding shares in Cardinal, on the same terms as its on-market offer.

The off-market offer will also be free of conditions, and will provide accelerated payment terms, at an offer price of A$1 a share, subject to there being no higher competing offer.