At long last, the lengthy battle for Cardinal Resources (CDV) between Shandong Gold and Nordgold appears to have come to an end.
Shandong, a Chinese state-owned company, treated itself to an early Christmas present on Thursday morning by purchasing almost 171 million shares in Cardinal at a price of A$1.05 (C$1.08) each.
The acquisition took its holding from 12.89 per cent to 43.39 per cent, or a total of just over 240.3 million shares.
Later the same day, Shandong released another announcement saying it had purchased an additional package of shares, giving it a relevant holding in excess of 50 per cent.
Notably, these shares came from Nordgold - a company backed by Russian oligarch and steel billionaire Alexey Mordashov - which said it was bowing out of the nine-month battle.
The London-based company said Shandong's current offer of A$1.075 (C$1.10) per Cardinal share was "beyond that at which Nordgold feels able to justify, taking into account the risks associated with mine development, entry into a new jurisdiction, and Nordgold's required rate of return on new projects."
Nikolai Zelenski, Nordgold's CEO, noted that the takeover offers for Cardinal had played out over an extended period, and had ultimately resulted in a strong outcome for all shareholders - particularly for Nordgold with an almost $180 million payday.
"In the case of Cardinal, the competitive bidding and strong Australian dollar, have taken Nordgold to a very substantial profit on its investment, whilst allowing us to continue always to prioritise capital discipline and maximise value for our shareholders," he added.
With a controlling interest, Shandong is now urging Cardinal's remaining shareholders to follow Nordgold's example and accept the offer of A$1.075 (C$1.10) per share, but in the meantime intends to appoint a representative to Cardinal's Board of Directors.
Unless extended, the offer is currently scheduled to close at 7:00pm Sydney time on Thursday, December 31, 2020.
But the Cardinal story wouldn't be the rollercoaster it's been without one final twist.
Dongshan Investments - an Emirati-Russian joint venture with gold operations in Sudan - filed an unexpected announcement offering to purchase all of Cardinal's shares at a price of A$1.20 (C$1.23), trumping the offer put forward by Shandong.
Dongshan said its shareholders had tasked management with increasing the company's resource base and bringing new exploration and mining projects to the group's portfolio. That was when Cardinal's Namdini Project in Ghana surfaced as an acquisition target; one which the company said would establish it as a major gold producer in West Africa.
However, Dongshan's offer remains subject to a number of conditions, one of which is obtaining a minimum 50.1 per cent interest in Cardinal.
Shandong responded, saying now that it's Cardinal's controlling shareholder, "it is clear that the announced minimum acceptance condition attached to the Dongshan Proposal will not be satisfied."
"It also appears highly improbable that the other announced conditions to the Dongshan proposal will be satisfied, either at all or in a short period of time."
No matter what ultimately happens to Cardinal, its shareholders have emerged as the clear winner - the company's share price has enjoyed a 237.5 per cent climb since the start of this year.
Cardinal Resources is currently up 0.962 per cent to C$1.05 per share at 9:32am EST.