The senior secured credit facility will help fund completion of the preliminary and definitive feasibility studies following a positive preliminary economic assessment released in March that supported Namdini as a low capital cost, high-margin development.
The Toronto-based fund, which is already a 4.88% shareholder in Cardinal, hopes to sign a binding agreement by August 17 with the ASX-TSX-listed junior.
Cardinal managing director Archie Koimtsidis said Sprott's offer was further "third-party validation" of the project, and would allow the company to fast-track the development of the mine, with the DFS now expected to be completed by October 2019.
The facility will have a term of 30 months with an interest rate of LIBOR-plus-7.75%. It will be secured against Cardinal's assets.
Sprott will be issued 4.25 million shares as part of the deal, while Cardinal has the option of early repayment.
The Namdini project has an indicated resource of 6.5Moz of gold contained in 180Mt grading 1.1 grams per tonne and an inferred resource of 500,000oz contained in 13Mt at 1.2gpt
The potential mine is described as being a tier one asset.
The PEA outlined 4.5Mtpa, 7Mtpa and 9.5Mtpa development options, with capital costs ranging from US$275-$426 million, all-in sustaining costs between $701-$794/oz and production rates between 159,000ozpa and 330,000ozpa. A 6.5Mtpa option is also being studied.
In tandem with its development plans, Cardinal is also looking along the Nangodi Shear, and recently reported a new gold discovery at Ndongo East, 15km north of Namdini. First-pass drilling of a prospective 9km-long area recently returned 9m at 23.3gpt including 3m at 59.2gpt from 60m, which the company said highlights the potential of the area.
It is assessing half a dozen coincident gold-in-soil and geophysical targets in the Bolgatanga project.
Cardinal shares were up almost 6% in morning trade in Australia to A44.5c, giving the company a market capitalisation of $166 million.