Eldorado Gold announces private equity partner for stalled Chinese project
TORONTO (miningweekly.com) – Canadian precious metals miner Eldorado Gold Corp on Monday announced that Chinese private equity company CDH Investments would acquire a 20% interest in the stalled Eastern Dragon project for $40-million.
Vancouver-based Eldorado said that after a private placement, CDH would own a 21.05% interest in Sino Gold Tenya (SGT), Eldorado's Hong Kong subsidiary, which indirectly holds the company's 95% interest in Eastern Dragon.
Eldorado’s Eastern Dragon project had been on care and maintenance pending receiving outstanding permit approvals from 2011.
The company said that it expected CDH to help complete the Eastern Dragon project to full production.
During the three months ended December 31, Eldorado booked a $524.9-million charge.
Located in the Heilongjiang province, in China, Eastern Dragon has proven and probable gold reserves of 764 000 oz, measured and indicated gold resources of 852 000 oz, and an inferred gold resource of 190 000 oz.
Output at the $56-million mine was estimated at 70 000 oz/y over an expected 11-year mine life.
Eldorado’s TSX-listed stock traded C$0.19 a share lower on Monday at C$7.77 apiece.
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