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Australia approves Sino-Eldorado deal
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5th October 2009
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JOHANNESBURG (miningweekly.com) – The Australian Foreign Investment Review Board has approved Eldorado Gold’s takeover of Sino Gold, the ASX-listed company reported on Monday.

The Vancouver-based Eldorado Gold announced in August that it would buy the just over 80% of Australia's Sino Gold that it did not already own.

Eldorado was offering 0,55 of its own shares for every Sino Gold share, which valued Sino Gold at around A$2,2-billion.

The two companies said in a joint statement in August that the merger would create an intermediate global gold producer, with a combined market capitalisation of around C$6,4-billion.

The combined company would have a current gold  production of around 550 000 oz, from four new, high-quality mines, growing to 850 000 oz by 2011, and would have a project pipeline and expansion opportunities which were expected to fuel gold production growth to beyond one-million ounces by 2013.

After the completion of the transaction, current Eldorado shareholders would own about 75% of the merged company, while the current Sino Gold shareholders would own about 25%.

Edited by: Mariaan Webb

 

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