Cardinal Resources' (TSX: CDV; ASX: CDV) Namdini mining licence has officially received sovereign parliamentary ratification in Ghana, the company says.
"This ratification and the recent issuing of the Environmental Protection Agency (EPA) permit, along with our water extraction permit and relocation action plan approval, places the Namdini gold project into an extremely secure and solid position for development," Archie Koimtsidis, Cardinal's CEO and managing director, stated in a press release.
A large-scale mining licence covering the Namdini project was granted to Cardinal by Ghana's Minister for Lands and Natural Resources in 2017. It originally covered 19 sq. km in the Dakoto area of the Talensi district in the Upper East Region of Ghana, and has now been expanded to 63 sq. km, the maximum allowable.
The expanded licence is granted for an initial period of 15 years commencing in 2020 and is renewable. This expansion would allow the company to improve and derisk the mine and infrastructure design and optimize financial outcomes, Cardinal says.
A feasibility study on the Namdini project last year estimated that it would produce about 4.2 million oz. gold over a mine life of 15 years, with an estimated 1.1 million oz. expected over the first three years of the operation. The development cost was estimated at US$390 million.
Meanwhile, the recently launched takeover offer by Russia's Nordgold is being "considered in detail" by the board, Cardinal says. The Australia-based miner also has an offer from Shandong Gold Mining, one of China's biggest gold producers.
The news sent Cardinal's Toronto-listed shares to a 52-week high of 68 ?. The company has about 520 million common shares outstanding for a $353-million market capitalization.
- This article first appeared in MINING.com.