Sinogold
Sino Gold Mining Limited (Sino) is an Australia-based company. The principal activities of the Company are mining and processing of gold ore, and sale of recovered gold, and exploration and development of mining properties. The Company mined 692,000 tons of ore through open-cut mining during the year ended December 31, 2007. At December 31, 2007, Sino had acquired a 94% interest in Golden China Resources Corporation. The operation in Jinfeng Mine achieved commercial production on September 1, 2007. A total of 449,000 tons of ore were treated during 2007, with an overall recovery of 71.9% producing 56,981 ounces of recovered gold. In 2007, 43,483 ounces of gold were sold. As of December 31, 2007 the 230 meter of underground development was achieved in White Mountain. Compulsory acquisition of Gold China Resource Corporation was completed on January 16, 2008.
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Eldorado Gold to acquire Sinogold for A$2.2bn
Chinese focused British Columbia-headquartered gold producer Eldorado Gold Corporation (TSX:ELD) announced today it has agreed to acquire Sydney-based gold miner Sino Gold Mining Limited in a deal worth A$2.2 billion (C$2 billion; US$1.8 billion), aiming to achieve an annual production level of a million ounces in 2013 for the combined company.
Sino Gold shareholders will be offered 0.55 Eldorado shares for each Sino Gold share in their possession, representing a 21.3% premium to Sino Gold's closing price on the ASX on Tuesday.
Eldorado bought 19.9% of Sino for US$282 million in June.
The transaction will give Sino Gold's current shareholders a 25% stake in the merged company and increase Sino Gold's total ownership to 30%.
The acquisition is set to boost Eldorado's value to C$6.4 billion and further increase its footing in China, which is the world's largest gold producing country.
The combined assets, including China's second largest gold mine owned by Sino, which is set to begin construction of its third mine this quarter, have a production capacity of 550,000 ounces from 4 mines, which is set to increase to 850,000 ounces with the addition of two more mines, and potentially reach 1,000,000 ounces in 2013.
The deal, which is still subject to approval from Sino's shareholders, will also give Sino Gold's shareholders exposure to Eldorado's projects in Turkey, Greece and Brazil.
Eldorado, which said it would now seek to establish an Australian listing, closed with a 2.7% gain on the Toronto Stock Exchange yesterday.
Other Sinogold news
- Sino Gold sees record production and starts developing third mine
2009-04-22 - Sino Gold increases stake in high grade Eastern Dragon prospect in China
2009-03-12 - Sino Gold in $176 million loan facility with China Construction Bank
2009-02-25
