- Cardinal Resources (TSXV:CDV) is restructuring its debt with the help of the Ghana Infrastructure Fund, a state-owned investment group
- The company has agreed to a deal where its current financier, Sprott Private Resource Lending, will transfer the debt to the Ghana Infrastructure Fund
- Through the deal, the company will transfer approximately C$31.96 million in debt
- Cardinal is currently developing the Namdini Gold Project in the region and released the site’s Feasibility Study late last year
- Cardinal Resources (CDV) is down 2.5 per cent and is trading at 38 cents per share
Cardinal Resources (TSXV:CDV) is restructuring its debt with the help of the Ghana Infrastructure Fund, a state-owned investment group.
The Ghana Government began the infrastructure fund as an investment vehicle for companies and projects, looking to develop projects in the West African nation.
Cardinal is currently developing the Namdini Gold Project in the region and released the site’s Feasibility Study late last year.
The Ghanan Government has purchased the debt off Sprott Private Resource Lending, Cardinal’s previous financier.
The balance of the debt sits at approximately C$31.96 million, following a payment of approximately $537,192 from Cardinal to the Sprott before the deadline closed.
Cardinal has also been provided with further funding of approximately $4.2 million for its restricted cash, which will now form part of its working capital.
Solomon Asamoah, the CEO of the Ghana Infrastructure Investment Fund stated that the country was happy to invest in one of Africa’s largest and most significant new gold discoveries.
“As stated many times by our President, H.E Nane Akufo Addo, we believe it is very important that there is increased paid participation in sectors of the domestic economy by Ghanaians, including the mining sector.
CEO of Cardinal Resources, Archie Koimtsidis said the company was impressed with the Ghana Infrastructure Fund as an organisation.
“This investment clearly demonstrated to all investors that Ghana is open for business as per the President, H.E Nane Akufo Addo’s speech at the 2019 Mining India conference in Cape Town, where he eloquently articulated the importance of Ghanaian paid financial participation into Ghanaian projects for the benefit of all its citizens long into their future,” he said.
Cardinal Resources (CDV) is down 2.5 per cent and is trading at 38 cents per share at 1:15 pm EDT.