BRIEF-Eldorado Gold to sell White Mountain, Tanjianshan Mines, Eastern Dragon Development Project for $600 mln

Mon May 16, 2016 10:51am EDT
 
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May 16 (Reuters) - Eldorado Gold Corp :

* Eldorado announces agreement to sell White Mountain and Tanjianshan Mines and Eastern Dragon Development Project

* Deal for $600 million

* Agreement provides for an RMB equivalent US$30 million deposit to be paid by purchaser and forfeited under certain circumstances

* Intends to redeploy net proceeds from disposition of its chinese assets to continue to grow its business based on long lived, low cost assets

* Transaction is expected to close in third to Q4 2016

* Following close, intends to redeploy net proceeds from disposition of chinese assets to continue to grow business

* Agreement provides for a reverse break-fee of $30 million payable by Eldorado to purchaser under certain circumstances

* BMO Capital Markets and Cutfield Freeman & Co are acting as financial advisors

* To sell interest in White Mountain and Tanjianshan Mines and Eastern Dragon Development Project to affiliate of Yintai Resources Co Source text for Eikon: Further company coverage: