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Additional Information
Market: TSX NYSE
Sector: Gold Mining
EPIC: ELD
Latest Price: 11.12  (1.14% Ascending)
52-week High: 21.50
52-week Low: 10.38
Market Cap: 7,910.50M
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Eldorado Gold
www.eldoradogold.com

Eldorado Gold Corporation is a gold mining company actively growing businesses in Brazil, China, Turkey, Greece, and surrounding regions. Eldorado Gold is one of the lowest cost pure gold producers, and anticipates production of 700,000 ounces of gold per annum by 2013.

Full Eldorado Gold profile here
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Eldorado expands footing in China, acquires Sino Gold in US$1.8 billion deal

26th Aug 2009, 1:55 pm
Eldorado expands footing in China, acquires Sino Gold in US$1.8 billion deal

Chinese focused British Columbia-headquartered gold producer Eldorado Gold Corporation (TSX: ELD) announced today it has agreed to acquire Sydney-based gold miner Sino Gold Mining Limited (ASX: SGX) in a deal worth A$2.2 billion (C$2 billion; US$1.8 billion), aiming to achieve an annual production level of a million ounces in 2013 for the combined company.


Sino Gold shareholders will be offered 0.55 Eldorado shares for each Sino Gold share in their possession, representing a 21.3% premium to Sino Gold’s closing price on the ASX on Tuesday.

Eldorado bought 19.9% of Sino for US$282 million in June.


The transaction will give Sino Gold’s current shareholders a 25% stake in the merged company and increase Sino Gold’s total ownership to 30%.


The acquisition is set to boost Eldorado’s value to C$6.4 billion and further increase its footing in China, which is the world’s largest gold producing country.


The combined assets, including China’s second largest gold mine owned by Sino, which is set to begin construction of its third mine this quarter, have a production capacity of 550,000 ounces from 4 mines, which is set to increase to 850,000 ounces with the addition of two more mines, and potentially reach 1,000,000 ounces in 2013.


The deal, which is still subject to approval from Sino’s shareholders, will also give Sino Gold’s shareholders exposure to Eldorado’s projects in Turkey, Greece and Brazil.


Eldorado, which said it would now seek to establish an Australian listing, closed with a 2.7% gain on the Toronto Stock Exchange yesterday.

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