(Yicai Global) Sept. 22 -- Shandong Gold Mining, China's biggest producer of the precious metal, will no longer pursue more than half of Cardinal Resources' equity and will revise its intentions to aim instead for a controlling stake in the Australian gold explorer, still enough to cement its position as a global gold producer, Shandong Gold said yesterday.

Shandong Gold will no longer set any conditions for its proposed acquisition plan, the firm said. It had specified in its original takeover offer in June that it wanted a minimum of 50.1 percent equity in Cardinal.

Since making its move, the Chinese gold miner has been embroiled in a bidding war with Cardinal's largest shareholder, Moscow-based Nord Gold. Earlier this month Shandong Gold upped its offer to AUD1 (USD0.72) per share from its original tender of AUD0.60 to outdo Nord Gold's counter-offer of AUD0.90 per share.

With its latest concession, Shandong Gold is holding out to buy as many shares as it can in order to gather more equity than Nord Gold, which holds 28.39 percent, and give it a controlling stake. At present, the firm has 10.94 percent voting rights in Cardinal.

Perth-based Cardinal owns the Namdini and Bolgatanga projects in northeastern Ghana and three gold mines in Subranum in the West African nation's southwest. The Namdini project is expected to finish and go into production in 2023 when it will produce an average of 280,000 ounces of gold per year. The other two pits are still in the prospecting phase.

Cardinal's share price [ASX:CDV] has more than doubled since Jinan-based Shandong Gold first made its bid. Today its stock dipped 0.93 percent to end the day at AUD1.06 (USD5.20).

Shares in Shandong Gold [SHA:600547] closed down 3.04 percent at CNY25.81 (USD3.80) apiece.

Editor: Kim Taylor