Cardinal Resources received investment committee approval from and executed a term sheet with Sprott Private Resource Lending. Sprott will provide a $25 million senior secured credit facility to Cardinal, subject to mutually satisfactory documentation and other customary conditions precedent.
The facility will provide working capital and fund the completion of the preliminary and definitive feasibility studies for Cardinal’s flagship Namdini Gold Project in Ghana.
Key terms of the facility include:
- A 30-month repayment term
- An interest rate of LIBOR + 7.75%
- Early repayment flexibility
- 4,250,000 ordinary shares issued to Sprott (subject to regulatory approvals)
The facility will be secured against assets of Cardinal and its wholly owned subsidiary, Cardinal Namdini Mining.
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 is consistent with our strategy of providing innovative and flexible capital to maximize the value of exceptional projects.”
Closing on the facility is expected on or about August 17, 2018.