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The Senior Secured Credit Facility will help fund the completion of the preliminary and final feasibility studies following a positive preliminary economic badessment released in March that supported Namdini as a project for the project. low cost and high margin.
The Toronto-based fund, which is already 4.89% shareholder of Cardinal, hopes to sign a binding contract by August 17th with the junior listed at ASX-TSX.
Cardinal General Manager Archie Koimtsidis stated that Sprott's offer was a "third-party validation" of the project and would allow the company to accelerate the development of the mine, the DFS being to be completed in October 2019.
The facility will have a term of 30 months with a LIBOR interest rate plus 7.75%. It will be guaranteed against Cardinal's property.
Sprott will receive 4.25 million shares as part of the transaction, while Cardinal has the option to prepay.
The Namdini project has an indicated resource of 6.5Moz of gold contained in 180Mt grading 1.1 grams per tonne and an inferred resource of 500 000oz contained in 13Mt at 1.2gpt
The potential mine is described as a first level badet.
The PEA described 4.5Mtpa, 7Mtpa and 9.5Mtpa development options, with investment costs ranging from US $ 275 to US $ 426 million, sustaining costs ranging from US $ 701 to US $ 794, and rates production from 159,000 to 330,000. An option of 6.5Mtpa is also under study.
Along with his development plans, Cardinal also looks at the Nangodi Shear and recently reported a new gold discovery at Ndongo East, 15 km north of Namdini. The first-pbad drilling of a 9-km-long area recently returned 9m at 23.3gp including 3m at 59.2gp of 60m, which, according to the company, highlights the potential of the area.
He evaluates a half-dozen coincidental gold-in-soil and geophysical targets in the Bolgatanga project.
Cardinal shares rose nearly 6% in morning trading in Australia to A44.5c, giving the company a market capitalization of $ 166 million.
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