Eldorado Gold has reached an agreement to sell its 82 percent interest in the Company's Jinfeng mine to a wholly-owned subsidiary of China National Gold (CNG) Group for US$300 million in cash, subject to certain closing adjustments.
"We are pleased to have reached an agreement which we believe mutually benefits both companies. 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," said Paul Wright, President and Chief Executive Officer of Eldorado Gold. "Since commencement of production in 2007, Jinfeng has consistently delivered solid operating results and has been a strong contributor in Eldorado's global portfolio."
The transaction is expected to close in the third quarter 2016 and is subject to obtaining various regulatory and other approvals and other customary closing conditions.As previously disclosed, Eldorado has been evaluating the merits of potentially monetizing its Chinese assets. The Company continues to advance this process and has been in discussions with various parties and will update shareholders as appropriate.
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.