Eldorado Gold Corp. (TSX:ELD,NYSE:EGO) announced that China’s CDH Investments will be acquiring a 20-percent interest in the Eastern Dragon project for US$40 million.
As quoted in the press release:
Following a new share issuance, CDH will own a 21.05% interest in Sino Gold Tenya (HK) Limited (‘SGT’), Eldorado’s wholly-owned Hong Kong subsidiary which indirectly holds the Company’s 95% interest in Eastern Dragon. Following the close of the transaction, anticipated to occur prior to March 25, 2014, CDH (20%) and the minority joint venture partner (5%) will collectively hold 25% in the project and Eldorado will hold the balance.
Eastern Dragon has been on care and maintenance pending receipt of outstanding permit approvals. It is anticipated that the participation of CDH in Eastern Dragon will assist in the completion of development and advancement to full production.