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Cardinal Resources Ltd (CRDNF) Cardinal Executes US$25 Million Term Sheet with Sprott
Perth, Australia (ABN Newswire) - Cardinal Resources Limited (ASX:CDV) (TSE:CDV) (OTCMKTS:CRD...
About this update from Sprott Inc.
[{"type":"text","content":"Cardinal Resources Ltd (CRDNF) Cardinal Executes US$25 Million Term Sheet with Sprott\nPerth, Australia (ABN Newswire) - Cardinal Resources Limited (ASX:CDV) (TSE:CDV) (OTCMKTS:CRDNF) (\"Cardinal\" or \"the Company\") is pleased to announce it has received investment committee approval from and executed a term sheet with Sprott Private Resource Lending (Collector), L.P. (\"Sprott\") to be provided with a US$25 million senior secured credit facility (\"Facility\"). The Facility is subject to mutually satisfactory documentation and other customary conditions precedent, which are expected to be completed on or about 17 August 2018. A positive Preliminary Economic Assessment released in March this year clearly demonstrated Cardinal's flagship Namdini Gold Project in Ghana to be a low capital cost, high-margin development opportunity. The US$25 million Facility will provide working capital and funding to complete the Preliminary and Definitive Feasibility Studies for Namdini. Archie Koimtsidis, CEO and Managing Director of Cardinal, stated: \"We are pleased to announce third-party validation from Sprott, a leading industry participant. This Facility provides Cardinal with the ability to continue to fast-track Namdini towards completion of a Definitive Feasibility Study, anticipated in Q3 2019, while also maximizing shareholder value by avoiding unnecessary dilution. \"Importantly, the term of the Facility is 30 months and therefore provides significant flexibility for the Company as it continues to de-risk Namdini's development.\" Dušan Petkovic, Principal of Sprott, commented: \"As one of the largest investors dedicated to the natural resource sector, Sprott is excited to continue its partnership with Cardinal. Our partnership with Cardinal is consistent with our strategy of providing innovative and flexible capital to maximize the value of exceptional projects.\" Key terms of the Facility are as follows: - Committed loan facility for US$25 million to be funded on the closing date - 30-month repayment term - Interest rate of LIBOR + 7.75% - Early repayment flexibility - Issue of 4,250,000 ordinary shares issued to Sprott (subject to regulatory approvals) - The Facility is secured against assets of Cardinal and its wholly owned subsidiary, Cardinal Namdini Mining Limited. ABOUT SPROTT Sprott is an alternative asset manager and...