Canada’s Eldorado Gold to acquire rest of Sino Gold Mining for $1.8B in stock

Eldorado to acquire rest of Sino Gold

VANCOUVER, British Columbia — Canada’s Eldorado Gold Corp. says it has agreed to buy all remaining shares of Australia’s Sino Gold Mining Ltd.

Sino Gold is one of the largest gold mining groups in China.

The all-stock deal is valued at 2 billion Canadian dollars (US$1.8 billion). Sino Gold stockholders will receive 0.55 Eldorado Gold shares for each Sino Gold share they own.

It allows Vancouver-based Eldorado to complete the takeover of Sino Gold begun in June when it acquired a 20 percent stake in the company from Gold Fields Ltd. in Johannesburg.

Eldorado said the latest deal announced Wednesday has the unanimous support of Sino Gold’s board and will result in a gold producer with combined market capitalization of 6.4 billion Canadian dollars (US$5.5 billion).