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Eldorado takes majority stake in Glory

Eldorado takes majority stake in Glory

Photo by Bloomberg

11th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – TSX-listed Eldorado Gold would move to acquire all the remaining shares in ASX-listed Glory Resources after the offer was declared unconditional.

Eldorado launched a 17c-a-share cash offer for Glory in October last year, in an effort to acquire the Sapes gold project, in Greece, which has a Joint Ore Reserves Committee-compliant resource of 637 000 oz, at an average grade of 15.1 g/t gold.

The project is located near Eldorado’s Perama Hill project.

Eldorado has gained more than a 90% interest in Glory, prompting the Canadian company to start a compulsory acquisition of the remaining shares in the company.

Fellow ASX-listed Cape Lambert Resources, which was the previous owner of the Sapes project, and which has 16-million shares in the junior developer, said this week that it would receive more than A$12.74-million for its holding in Glory, including a A$6.5-million upfront payment in lieu of a milestone payment on the Sapes project.

“Cape Lambert is pleased the takeover of Glory Resources has gone unconditional. Upon completion, we will have generated significant cash proceeds from our Glory investments, delivering considerable value for Cape Lambert shareholders,’ said executive chairperson Tony Sage.

Edited by Creamer Media Reporter

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