Eldorado Gold has completed the sale of its 82% stake in the Jinfeng mine to a wholly owned subsidiary of China National Gold Group in a deal worth $300m.
The open-pit and underground Jinfeng gold mine is located in China’s southern Guizhou Province. It uses Biox technology and conventional carbon in leach circuit to produce gold dore.
Eldorado Gold president and CEO Paul Wright said: "We are pleased to have completed the sale of our interest in the Jinfeng mine and expect the previously announced sale of our interest in the White Mountain and Tanjianshan Mines and the Eastern Dragon Development Project to continue on schedule and close in the fourth quarter.
“These transactions surface meaningful value to Eldorado and further strengthen our financial flexibility to advance our internal project pipeline."
Eldorado said that China National Gold has been the company’s minority partner at Jinfeng for more than 14 years.
The mine started production in 2007 and has delivered solid operating results.
Eldorado previously disclosed that the company has been evaluating the merits of potentially monetising its assets in China.
Jinfeng is expected to process 930,000t of ore this year, which will be sourced from the underground operations and a small amount of stockpile. Sustaining capital costs for this year at the mine are estimated to be $15m.
Eldorado has mining, development and exploration operations in Turkey, China, Greece, Romania and Brazil.
Image: The Jinfeng gold mine in China’s southern Guizhou Province. Photo: courtesy of Eldorado Gold Corp.