Ghana gold focused exploration and development company Cardinal Resources Limited (ASX/TSX: CDV), repoorts that it is receiving strong interest from potential backers as it moves to tie-up financing for its 5.1 Moz Namdini Gold Project in Ghana.
Chief Financial Officer, Jon Grygorcewicz, said the company, in conjunction with appointed financial advisers, Cutfield Freeman & Co, has received a number of term sheets from banks and financiers.
Mr Grygorcewicz said that with the release of the Namdini Feasibility Study in late 2019 and accompanying NI43‐101 Technical Report additional banks, financiers and corporates have shown interest in Project Finance participation and have subsequently been granted access to the data room.
In addition, the company is concurrently evaluating strategic alternatives to bring the Namdini Project into production with a view to maximising economic outcomes for Cardinal shareholders.
“With the current gold price maintaining a price above US$1,500/oz as compared to the gold price of US$1,350/oz used in the Company’s Feasibility Study, it creates an even more compelling financial model and project valuation which provides a greater level of confidence to banks, financiers and corporates.
“We are pleased with the strong level of interest and the rate of progress to date. We look forward to updating shareholders as we progress the Namdini Project Financing programme.”
Cardinal Resources released the Namdini Gold Project Feasibility Study in late 2019. The Feasibility Study concluded the Project has strong economic returns with a post‐tax NPV of US$590 million and an IRR of 33.2% at a conservative gold price of US$1,350 per gold oz.
In early 2019, the company commenced Project finance discussions with a number of Australian and International Banking groups from which the Company received a number of preliminary (non‐binding) financing term sheets.
In addition to traditional financing solutions, the company is concurrently evaluating strategic alternatives to bring the project into production with a view to maximising economic outcomes for Cardinal shareholders.
In the meantime, the company remains in a strong financial position with cash reserves of approximately A$27 million.
