Eldorado Gold Set to Acquire Sino Gold for $2B
Assuming completion of the transaction, the combined company will have four operating gold mines, three in China and one in Turkey, that are expected to produce a combined total of about 550,000 oz of gold in 2009. Two new mines, one in China and one in Turkey, are expected to lift production to about 850,000 oz in 2011, and project development combined with expansion at existing operations offers the opportunity to increase production to more than 1 million oz/y by 2013. The combined company will have proven and probable reserves of 12.7 million oz.
Eldorado is headquartered in Vancouver, British Columbia; Sino is headquartered in Sydney, Australia. Eldorado plans to establish an Australian listing for its shares, which would allow Sino shareholders to hold their newly acquired Eldorado shares on the Australian Stock Exchange. The company will also maintain an important regional office in Sydney. The transaction is expected to close in December 2009.
Sino Gold has current gold production from its 82%-owned, open-pit/ underground Jinfeng gold mine in Guizhou province, southern China, with current production of about 151,000 oz/y, and from its 95%-owned, underground White Mountain gold mine in Jilin province, northeast China, where commercial production began in January 2009, targeting design capacity of 65,000 oz/y. Sino is nearing a construction start at its open-pit/underground Eastern Dragon project in Heilongjiang province, northeast, China, with production planned at about 90,000 oz/y, and it is assessing the potential of its Beyinhar project in Inner Mongolia to be developed as an open-pit, heap leach gold operation.