CDV has announced an indicative non-binding and conditional proposal from Nordgold to acquire all issued capital in CDV. Nordgold has acquired a 19.9% stake in CDV via the purchase of Gold Fields (GF) 16.4% stake with an additional on-market purchase of ~18m shares at ~35cps. Nordgold is a >1Mozpa gold producer with projects in West Africa and Russia with 10 mines in four countries. The bid is highly conditional and predicated on completion of satisfactory due diligence. We acknowledge that Nordgold has the skill set to develop Namdini, however we think the bid is opportunistic in the current market downturn. Until such time as a formal bid is launched, CDV can continue to progress its plan to develop Namdini. BUY recommendation maintained and valuation of $0.93ps.
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