TORONTO (miningweekly.com) – Having previously Eldorado stated that it was mulling the sale of its Chinese assets, dual-listed Eldorado Gold this week announced that it would sell its 82% interest in the Jinfeng mine to China National Gold Group, for $300-million in cash.
China National Gold had been the company’s minority partner at Jinfeng for more than 14 years and was the logical buyer as the operation transitioned fully into the underground, the company advised.
According to Eldorado, Jinfeng had consistently delivered solid operating results since it started production in 2007, and had been a strong contributor in Eldorado's global portfolio.
Subject to obtaining various regulatory and other approvals and other customary closing conditions the transaction was expected to close in the third quarter.
BMO Capital Markets and Cutfield Freeman & Co were acting as financial advisors and Fasken Martineau DuMoulin, Herbert Smith Freehills, Morrison & Foerster and JunHe were acting as legal counsel to Eldorado. GMP Securities wass acting as financial advisor and Borden Ladner Gervais was acting as legal counsel to Eldorado's board.
Eldorado planned to publish its first-quarter results after market close on May 12.