NEWS
04/26/2016 01:02 EDT | Updated 04/26/2017 01:12 EDT

Eldorado Gold signs deal to sell Chinese mine for US$300 million

VANCOUVER — Eldorado Gold Corp. (TSX:ELD) says it has signed an agreement to sell its 82 per cent interest in its Jinfeng mine in China to a wholly-owned subsidiary of China National Gold Group for US$300 million in cash.

Eldorado president and CEO Paul Wright says China National Gold has been its minority partner at Jinfeng for over 14 years and is the logical buyer for the operation, which he says has "consistently delivered solid results" since it began production in 2007.

Vancouver-based Eldorado, which also has operations in Turkey, Greece, Romania and Brazil, says it has been evaluating the potential of monetizing its Chinese assets and continues to advance this process.

The transaction is expected to close in the third quarter of 2016 and is subject to various approvals.

China National Gold is the leading gold company in China.

The Canadian Press