27 August 2009

Eldorado goes for gold in China

Eldorado Gold Corp. will end up paying $1.8 billion in stock for all the remaining shares of Australia's Sino Gold Mining Ltd.

Sino Gold is one of the largest gold mining groups in China.

“The business combination with Sino Gold enables Eldorado to realize its vision of establishing a leading presence in China,” said Vancouver, B.C., Canada-based Eldorado Chief Executive Paul Wright.

“Eldorado and Sino Gold have similar approaches and cultures based on establishing strong regional businesses through empowerment of local management, responsible operations, and careful attention to maintaining long-term social license,” Wright said.

Sydney-based Sino Gold is focused on gold exploration and mining in China. It holds an 82% interest in the Jinfeng Gold Mine, China’s second largest gold mine and is now producing 180,000 ounces of gold per year.

Eldorado has gold mines in Turkey, Greece, Brazil, and China.

The deal should close December.

For related information, go to www.isa.org/productivity.