Eldorado Gold Corporation has reached an agreement to sell its 82% interest in the Jinfeng Gold Project in Guizhou Province, China, to a wholly-owned subsidiary of China National Gold Group for US$300 million in cash.
Eldorado’s president and CEO Paul Wright said, “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.
“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 of 2016 and is subject to obtaining various regulatory and other approvals and other customary closing conditions.
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.
Eldorado is a leading low cost gold producer with mining, development and exploration operations in Turkey, China, Greece, Romania and Brazil.
China National Gold is the leading gold company in China and the only central state-owned enterprise in China’s gold industry under the direct supervision of State-owned Assets Supervision Administration Commission of the State Council. China National Gold’s operations are in the core area of China’s main mineralization zones, including Inner Mongolia, Henan, Jiangxi and Shaanxi provinces.