Eldorado To Sell 82% Stake In Jinfeng Mine To China National For $300 Mln Cash

(RTTNews) - Canadian low-cost gold producer Eldorado Gold Corp. (ELD.TO, EGO) announced Tuesday that it has reached an agreement to sell its 82 percent interest in the Company's Jinfeng mine to a unit of China National Gold Group for $300 million in cash, subject to certain closing adjustments.

The transaction is expected to close in the third quarter 2016, subject to regulatory and other approvals and other customary closing conditions.

Eldorado has been evaluating the merits of potentially monetizing its Chinese assets. The company said it continues to advance this process and has been in discussions with various parties and will update shareholders as appropriate.

Paul Wright, President and Chief Executive Officer of Eldorado Gold, said, "China National Gold has been our minority partner at Jinfeng for over fourteen years and is the logical buyer as the operation transitions fully into the underground. Since commencement of production in 2007, Jinfeng has consistently delivered solid operating results and has been a strong contributor in Eldorado's global portfolio."

In the deal, 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.