Eldorado Gold Corp. Announces Sale Of More Chinese Assets

(Kitco News) -Eldorado Gold Corp (TSX: ELD; NYSE: EGO), which late last month announced an agreement to sell its Jinfeng mine, now says it has also struck a deal to sell its interest in the White Mountain and Tanjianshan mines and the Eastern Dragon development project to an affiliate of Yintai Resources Co. Ltd. for $600 million in cash, subject to certain closing adjustments. 

The transaction "recognizes immediate value to both companies and its shareholders,” says Paul Wright, president and chief executive officer of Eldorado.

“The proposed transaction provides Yintai the opportunity to build on our achievements in China. We look forward to closing the sale of both transactions and advancing our internal project pipeline."

The transaction is expected to close in the third or fourth quarter and is subject to various regulatory and other approvals, including Yintai shareholder approval.

After the close, Eldorado says it intends to redeploy net proceeds from the sale of Chinese assets “to continue to grow its business based on long-lived, low-cost assets.”

Courtesy: Kitco News