Post by
phoenix_trader on May 06, 2020 11:39am
What is Cardinal worth?
Using the Kinross acquisition of a Far East Russia prospect in 2019 as the base, at least $US 300 mill or .60US per Cardinal share.
Acquisition of Chulbatkan development project
On July 31, 2019, the Company announced an agreement to acquire the Chulbatkan development project located in Khabarovsk Krai, Far East Russia, from N-Mining Limited (“N-Mining”), for total fixed consideration of $283.0 million. In addition, N-Mining will be entitled to receive an economic participation equivalent to a 1.5% Net Smelter Return (“NSR”) royalty on future production from the deposit area, as well as $50 per ounce of future proven and probable reserves beyond the first 3.25 million of declared proven and probable ounces. Kinross will retain the right to buy-back 1/3 of the 1.5% NSR royalty for $10 million, subject to certain gold price related adjustments, at any time within 24 months of closing.
On January 16, 2020, the Company closed the acquisition. In accordance with an amended acquisition agreement, the first installment of $141.5 million, representing 50% of the $283.0 million fixed purchase price, plus ordinary course net working capital adjustments of $3.1 million, were paid in cash. The amendment also requires that 60%, and at the Company’s sole discretion up to 100%, of the final installment of $141.5 million, due on the first anniversary of closing, be settled in Kinross shares.
The acquisition was accounted for as an asset acquisition, with the total purchase price of $290.5 million, comprised of the $283.0 million fixed purchase price, plus $3.1 million of net working capital adjustments and transaction costs of $4.4 million.
Comment by
phoenix_trader on May 06, 2020 1:02pm
2020 PDAC technical document on the Namdini deposit: https://www.pdac.ca/docs/default-source/conventions/2020-convention/tech-session-abstracts/namdini-gold-deposit-northern-ghana.pdf?sfvrsn=591f9398_0