Update: Cardinal Resources Up 4% On Environmental Permit Approval For Namdini Gold Project, Higher Gold Price; Still Evaluating Nord Gold Approach
10:48 AM EDT, 05/04/2020 (MT Newswires) -- Cardinal Resources Ltd. (CDV.TO) has recovered all of last Friday's modest 1.5% loss, up more than 4% after saying Monday that Ghana approved the environmental impact statement for its Namdini gold project. The company added that the increase in gold prices to US$1,452 per ounce to US$1,757 per ounce has positively impacted project economics.
According to Cardinal, the Feasibility Study evaluated the Namdini project outcomes at a gold price of US$1,350 per ounce, but also presented gold price sensitivities from US$1,150 per ounce and up to US$1,550 per ounce.
In reference to the company's announcements of March 16 and again March 30, 2020, in relation to the recent approach from Nord Gold, the company said it continues to work with the Special Purpose Committee to review all strategic alternatives.
Meanwhile, on its Ghana operations, the site's workforce has been reduced to key personnel as the country halted all non-essential activity and suspended all international travel. The company said it is doing everything to ensure that it is well placed to resume normal business as soon as practically possible.
Cardinal said it has received a number of non-binding financing term sheets from banks and financiers for debt financing and is concurrently evaluating strategic alternatives to bring the project into production.
To date, the company has completed about 37,164 meters of sterilization drilling of the proposed infrastructure area within the Namdini mining license.