Australian gold-focused exploration company, Cardinal Resources Limited has finalised documentation which allows the company to enter into a transaction for US$25million ($AU32 million) with Canadian based Sprott Private Resource Lending to provide a credit facility.
The facility will provide working capital and funding to complete the Preliminary and Definitive Feasibility Studies for the Namdini Gold Project, which is located approximately 50km south-east of the regional town of Bolgatanga in Northern Ghana. The project lies within the Nangodi Greenstone Belt, one of a series of granite-greenstone belts within the area which host significant gold mineralisation in Ghana and Burkina Faso.
“We would like to thank both Sprott and Cardinal legal teams in Ghana, Australia and Canada who have worked tirelessly to bring about a successful outcome,” said Archie Koimtsidis, CEO and Managing Director of Cardinal.
“This 30-month facility provides Cardinal with the ability to continue to fast-track Namdini towards completion of a Definitive Feasibility Study, anticipated in Q3 2019, while also maximising shareholder value by avoiding unnecessary dilution,” Mr Koimtsidis explained.
The Namdini Gold Project has an Indicated Mineral Resource of 6.5Moz gold and Inferred Mineral Resource estimate of 0.5 Moz of gold (as per 5 March 2018). Additional multi-disciplinary engineering and metallurgical activities are also supporting the project.
The company is also continuing works at the Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) projects.
Comprehensive information on all of these projects can be found here.