Chinese fund management company CDH Investments will acquire a 20% interest in Eldorado Gold's (TSX:ELD) Eastern Dragon project for US$40 million, the gold miner announced February 24.
The project is located in China's Heilongjiang province and has proven and probable gold reserves of 764,000 ounces, with an expected annual production of 70,000 ounces and a mine life of 11 years.
A new share issuance will see CDH owning a 21.05% interest in Sino Gold Tenka Limited, a wholly owned subsidiary of Eldorado located in Hong Kong. Sino Gold indirectly owns Eldorado's 95% interest in Eastern Dragon.
The transaction is expected to close before March 25.
Eldorado Gold ranked at number 11 on Business in Vancouver's annual listing of the top 100 most profitable companies in the province, published in November 2013.
