Cardinal Resources Ltd (ASX:CDV) shares surged 40% on Monday after receiving a notification from Russian gold miner NordGold that it has acquired a 19.9% interest in Cardinal and is looking to acquire the remaining shares.
Nordgold issued a non‐binding indicative and conditional proposal to acquire all of the issued capital of Cardinal that it does not already own for 45.775 cents per share in cash.
Given the number of conditions to provide a formal proposal (which is predicated amongst other things completion of due diligence satisfactory to Nordgold in their sole discretion), there is no guarantee that a formal proposal will ultimately be made by Nordgold.
The board of Cardinal has appointed a special purpose committee to consider Nordgold’s correspondence.
Accordingly, shareholders are advised to take no action at this time in relation to the Nordgold press release.