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ReGIonAL RoUnDUP AFRIcA

Shandong upped its offer for Cardinal Resources to $1/share last month
Metal Tiger plc, an existing shareholder
of both Cobre and Kalahari Metals, will
reduce its current stake in the Kalahari
Metals JV from about 62% to 49% post-
completion.
Exploration on KML’s tenements was
in progress at the time of print, with future
exploration activities to be jointly funded
under the proposed JV arrangements with
Metal Tiger.

Mali Lithium goes

for gold

Mali Lithium Ltd has made the bold deci-
sion to pursue the acquisition of an 80%
interest in the Morila gold mine from Bar-
rick Gold Corp and AngloGold Ashanti Ltd.
The purchase is estimated to cost $US22-27
Up and up for production from Namdini could start in the million, with the acquisition subject to Mali
Lithium securing acquisition finance and no
first half of next year.
A capital cost of $US390 million (includ-
Cardinal ing $US42 million contingency) is required objection from the Malian Government.
Close of the transaction is being targeted
to build Namdini, with a 2019 feasibil- for the end of this month. Mali Lithium will
Shares in Cardinal Resources Ltd sky- ity study indicating production of 287,000 raise up to $70 million to fund the acquisition,
rocketed to all-time highs – $1.02c/share ozpa gold over at least 15 years. with Resolute Mining Ltd to join the register
– in early September as Shandong Gold It is estimated that 1.1 mozpa gold will be as a strategic investor.
Mining Co. Ltd exercised its right to match produced from Namdini in the initial three Morila has produced in excess of 7.4 moz
or make a superior takeover proposal for years of operations. gold over 20 years from a 4.5 mtpa plant. It
the company. Assuming a $US1,550/oz gold price, currently boasts an inferred resource adja-
Shandong increased its offer for 100% the feasibility study estimated AISC of cent and beneath Morila totalling 32mt @
of Cardinal to $1/share after NordGold $US895/oz over 15 years, payback of nine 1.26 g/t gold for 1.3 moz contained within a
S.E. upped its own takeover bid to 90c/ months, pre-tax NPV of $US1.4 billion and conceptual pit shell of $US1,250/oz.
share. pre-tax IRR of 57%. A new resource and updated mine plan
“Cardinal notes while the further im- were reportedly being prepared in light of
proved offer is no longer subject to Chi- “prevailing gold prices”.
nese regulatory approvals or FIRB ap- Botswana calling “Morila is one of West Africa’s great gold
proval, it remains subject to a number of mines and we are excited and privileged to
conditions, including the minimum accept- for Cobre acquire a mine of Morila’s calibre with its
ance condition of 50.1%,” Cardinal said in past production plus mineral resources [gold
a statement. Cobre Ltd has joined the copper-rich endowment] of 8.7 moz gold,” Mali Lithium
“The further improved offer from Shan- region of the Kalahari copper belt in Bot- executive chairman Alistair Cowden.
dong Gold is now being carefully consid- swana. “This is truly a transformative transaction
ered in detail by the board, together with A binding heads-of-agreement for the for the company as we become a gold pro-
the special committee and its financial and proposed scrip-based acquisition of 51% ducer. We have a unique advantage as the
legal advisers. Cardinal will also continue of the equity of private UK company Kala- newest gold producer on ASX as Morila has
to engage with Shandong Gold in respect hari Metals Ltd (KML) was signed in Au- all the infrastructure required of an operating
of the further improved offer.” gust by Cobre. remote gold mine as well as the expertise of
Since competing offers were made for KML controls 8,100sq km in Botswana the operating team. We will benefit from the
Cardinal by Shandong and NordGold, it (6,650sq km 100%-owned and 1,450sq substantial sunk capital invested by the pre-
has always been the company’s prefer- km in JVs), the second largest tenure vious owners over the last 20 years.”
ence to reject NordGold’s proposal and holding in the country behind Sandfire Re-
accept Shandong’s bid; a stance which sources Ltd.
remains. At the time of print, Cobre was undertak- Alistair Cowden
Interest in Cardinal is fuelled by its 5.1 ing due diligence on KML’s ground, with a
moz Namdini gold project in Ghana’s Up- final decision to proceed, which is subject
per East region. to various conditions, to be voted on by
Sovereign Parliamentary Ratification for shareholders at this month’s AGM.
a mining licence at Namdini, which is valid Under the proposed deal, Cobre will
for a renewable term of 15 years starting purchase an initial 49.9% stake, increas-
in 2020, was received recently and FEED ing to 51% subject to regulatory approvals,
activities expected to be completed in Q4. funded by the issue of 21.4 million Cobre
Meanwhile, the resettlement action plan shares at 20c/share, to be escrowed until
is targeted for completion in Q1 2021, as January 31, 2022.

Page 104 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT