Eldorado Gold to sell Chinese mine for $300 million
Canada’s Eldorado Gold (TSX:ELD) (NYSE:EGO) has signed an agreement to sell its 82% stake in the Jinfeng mine in China to a wholly-owned subsidiary of China National Gold Group for US$300 million in cash.
The Jinfeng mine is expected to generate 95,000-105,000 ounces of gold this year, as the operation transitions fully into the underground.
The company’s president and CEO Paul Wright said China National Gold, one of the Asian country's main bullion producers, has been its minority partner at Jinfeng for over 14 years. Because of that, Wright added the firm was the logical buyer for the open-pit and underground mine, which he said has “consistently delivered solid results” since it began production in 2007.
Jinfeng produced 149,655 ounces of gold in 2015 and is expected to generate 95,000-105,000 ounces of gold this year, as the operation transitions fully into the underground.
The Vancouver-based miner, which also has operations in Turkey, Greece, Romania and Brazil, noted it continues evaluating the potential of monetizing its Chinese assets, adding it has been in discussions with various parties.
The deal is expected to close in the third quarter of the year and is subject to various approvals.