Eldorado Gold Corporation has completed the sale of its respective interests in the White Mountain and Tanjianshan mines and the Eastern Dragon Development Project, all in China, to an affiliate of Yintai Resources Co Ltd. The sale concludes Eldorado’s 11-year involvement in China.
The US$600 million sale to Shenzhen-listed Yintai was announced on May 16, 2016. It involved the company’s 95% interest in White Mountain, 90% interest in Tanjianshan and 75% stake in Eastern Dragon.
White Mountain is an operating gold project in Jilin Province of northeast China. During the September quarter this project produced 13,975 ounces, which was lower than the 16,359 ounces produced in the corresponding quarter of 2015 owing to lower average treated head grade and reduced average recovery rates.
Tanjianshan is an operating gold project in Qinghai Province of northern China. During the September quarter it produced 10,401 ounces which was considerably lower than the 29,055 ounces produced in the corresponding 2015 quarter. This was due to a decrease in tonnes mined from the Jinlonggou pit while an unplanned mill shutdown due to repairs to a cracked mill shell also impacted production.
Eastern Dragon is a development project in Heilongjiang Province of northeast China.
Eldorado previously concluded the sale of its 82% stake in the operating Jinfeng Gold Project in Guizhou Province of southern China to a wholly-owned subsidiary of China National Gold Group for US$300 million.
Of the Yintai sale Eldorado’s president and CEO Paul Wright said, “This closing marks the conclusion to Eldorado’s 11-year history in China. We would like to acknowledge the dedication and hard work of all of our Chinese employees and staff throughout this period,
“We are very pleased to have completed the monetisation of our Chinese assets and look forward to advancing our internal project pipeline with the enhanced financial flexibility resulting from the sale process.”
Eldorado is a low cost gold producer with mining, development and exploration operations in Turkey, Greece, Serbia, Romania and Brazil.