Sino Gold Mining and Eldorado Gold have agreed to a business combination which will see Canadian-based Eldorado purchase all of Sino Goldâ€™s shares in a transaction that values the Australian company at about Aus$2.2 billion.The combination will create an intermediate global gold producer with combined market capitalization of about Can$6.4 billion and will establish Eldorado as the leader among international gold producers in China, the worldâ€™s largest gold producing country.It reinforces Eldoradoâ€™s position as a low-cost, high-growth global gold producer with the addition of Sino Goldâ€™s Chinese assets. Combined current annual gold production is 550,000 ounces from four new mines, growing to 850,000 ounces by 2011 from six mines.Project pipeline and expansion opportunities are expected to fuel gold production growth to beyond 1 million ounces by 2013.The combination also provides Sino Gold shareholders with continued exposure to Chinaâ€™s gold industry as well as diversifying their country risk by gaining exposure to quality gold assets in Turkey and South America.Eldorado will seek to establish an Australian listing of Eldorado shares such that Sino Gold shareholders can hold the Eldorado shares they receive on the ASX.Sino Gold directors have unanimously recommended that shareholders vote in favor of the proposed scheme.After completion of the transaction Eldorado shareholders will own about 75% of the merged company and Sino Gold shareholders 25%, but including Eldorado as a shareholder, Sino Goldâ€™s ownership will reach about 30%.Eldoradoâ€™s president and CEO Paul Wright says, â€œEldorado entered China in 2004 recognizing that it was quickly emerging as the most important gold producing country in the world.â€œChina is blessed with outstanding geological potential, a supportive population and government, and a strong mining law.â€œThe business combination with Sino Gold enables Eldorado to realize its vision of establishing a leading presence in China.â€Sino Goldâ€™s president and CEO Jake Klein says, â€œThis transaction is an exciting opportunity for Sino Gold shareholders to participate in the creation of a leading intermediate gold producer with an international footprint and exciting prospects.â€www.sinogold.com.au
The ASIA Miner editor John Miller interviews Gemcom Software International president Rick Moignard about the acquisition of the company by Dassault Systèmes, the 3DExperience Company. Click here
Martabe first gold pour imminent
G-Resources will pour first gold at its world-class Martabe Gold-Silver Project in North Sumatra, Indonesia, by the end of July. This is a major milestone for the company and for Indonesia, as stated by chief exexcutive officer Peter Albert in an interview with The ASIA Miner editor John Miller (click here).
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