Vancouver-based Eldorado Gold Corp. (TSX: ELD)(NYSE: EGO) the largest foreign gold producer in China, said it agreed to sell its remaining mining interests in China for $600 million to Yintai Resources Co. Ltd. (SHSZ: 000975). The assets being sold include the White Mountain and Tanjianshan mines and the Eastern Dragon development project.

A few weeks ago Eldorado agreed to sell its 82% stake in the Jinfeng mine to China National Gold Group for $300 million in cash.

Following the closing of these deals, Eldorado intends to redeploy net proceeds from the disposition of its Chinese assets to continue to grow its business elsewhere, such as Turkey, Greece, Romania and Brazil, where it has current mining operations, based on long lived, low cost assets.

“We are very pleased to have reached this agreement as this transaction recognizes immediate value to both companies and its shareholders,” said Paul Wright, president and CEO of Eldorado Gold. “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 to fourth quarter 2016 and is subject to obtaining various regulatory and other approvals, including Yintai shareholder approval, and other customary closing conditions.

The deal provides for an RMB equivalent US$30 million deposit to be paid by Eldorado and forfeited under certain circumstances, and a reverse break-fee of the same amount payable to Yintai under certain circumstances.

BMO Capital Markets and Cutfield Freeman & Co. are acting as financial advisors and Fasken Martineau DuMoulin LLP, Herbert Smith Freehills LLP, Morrison & Foerster LLP and JunHe LLP are acting as legal counsel to Eldorado. GMP Securities L.P. is acting as financial advisor and Borden Ladner Gervais LLP is acting as legal counsel to Eldorado’s Board of Directors.

Eldorado Gold Corp. is a leading low cost gold producer with mining, development and exploration operations in Turkey, China, Greece, Romania and Brazil. With headquarters in Vancouver, Canada, Eldorado’s 18 offices and operations employ over 7,200 people worldwide. The company operates as a decentralized business unit, with the majority of employees and management being nationals of the country where offices are located. The company was founded in 1991.

Yintai Resources Co. Ltd. is engaged primarily in nonferrous metals mining and controls the polymetallic Huaaobaote mine in Inner Mongolia and is publicly listed on the Shenzhen Stock Exchange, with a market capitalization of approximately US$2.5bn.

China Yintai Investment Holding Co., Ltd. is the parent company of Yintai and conducts business in a number of sectors including commercial and retail real estate development and management, public utilities management, hospitality, intelligent logistics and financial services. The Yintai Group’s other primary holdings include a 12% interest in Metro Land Corporation (SHSE: 600683) and a 34% interest in lntime Retail Group Company (SEHK: 1833). The YT Group and its 100-some affiliates and subsidiaries have about RMB 45 billion in assets and employ more than 50,000 people across China.

Facebooktwittergoogle_pluspinterestlinkedinmail

CONTACT US

Thank you for contacting ExitHub. We'll respond as soon as possible.

Sending

© 2018 ExitHub Inc. All Rights Reserved.

Log in with your credentials

or    

Forgot your details?

Create Account