Eldorado to sell $600m China assets to Yintai Resources

Eldorado to sell $600m China assets to Yintai Resources

Canada’s Eldorado Gold (TSX:ELD) is selling its stakes on two mines and a development project to a partner of China’s Yintai Resources for US$600 million.

Eldorado was the largest foreign gold producer in China until now and used to have three of its six mines operating in China.

The transaction includes Eldorado’s interest in the White Mountain and Tanjianshan mines and the Eastern Dragon development project. The deal is expected to close in the third to fourth quarter of 2016.

The miner signed a deal last month to sell its 82 per cent stake in Jinfeng mine to a subsidiary of China National Gold Group for $300 million.

Eldorado still has various foreign operations in countries such as Brazil, Turkey, Greece and Romania.

The firm stated it plans to use the funds from the Yintai sale to expand its business “based on long-lived, low-cost assets.”

The financial advisors to Eldorado on the agreement are BMO Capital Markets and Cutfield Freeman & Co.