VANCOUVER — It took roughly two years, but producer Eldorado Gold (TSX: ELD; NYSE: EGO) has finally divested all of its production and development assets in China. On May 16 the company announced the sale of its White Mountain and Tanjianshan mines, and the Eastern Dragon development project, to an affiliate of Yintai Resources for US$600 million in cash.
Eldorado has been exploring options for its Chinese portfolio since 2014, and had been contemplated a listing on the Hong Kong Stock Exchange. The strategy shifted toward monetization in the past few months, with president and CEO Paul Wright indicating on a May 12 conference call that there were “numerous approaches by companies looking to acquire [the assets.]”
The transaction is expected to close in the third to fourth quarter and is subject to obtaining various approvals, including Yintai shareholder approval. The agreement provides for a US$30-million deposit to be paid by the purchaser, and a reverse break fee of the same amount payable by Eldorado.
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