KWM works with Shandong Gold on takeover bid for Cardinal Resources

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Advised by King & Wood Mallesons, Chinese mining company Shandong Gold has announced an off-market takeover bid to acquire 100 per cent ownership of Cardinal Resources (Cardinal), an ASX/TSX dual listed gold exploration and development company.

Endorsed by Cardinal's board, implementation of the offer will see Shandong Gold acquire control of Cardinal's development-ready Namdini Project in Ghana, West Africa. The transaction also sees Shandong Gold provide an interim funding package by subscribing for approximately $12m of Cardinal equity.

Shandong's 60c per share takeover offer and interim funding represents an overall deal value of around A$330m.

Acting on the transaction is a cross-border KWM team being led by Perth partner Heath Lewis and Beijing partner George Zhao.  Advice is also being provided by solicitors Angela Zhao, Daniel Cannon, Yang Shen and Zhen Wang.

Commenting on the takeover bid, Heath Lewis commented: "It is great to be advising Shandong on this multi-jurisdictional matter and to see the benefits of successful cross-border collaboration at both KWM, our client and Morgan Stanley.  The endorsement of Cardinal's board demonstrates the strength of the offer, and positions Shandong Gold to pursue the development of West African gold projects."