Chinese private equity firm CDH Investments has acquired a 20 per cent interest in the Eastern Dragon gold mining project in Heilongjiang Province, China, for $40m.
Following a new share issuance from Toronto and New York-listed low-cost gold producer Eldorado Gold, CDH will own a 21.05 per cent interest in Sino Gold Tenya, Eldorado’s wholly-owned Hong Kong subsidiary which indirectly holds the company’s 95 per cent interest in Eastern Dragon.
It is anticipated that the participation of CDH in Eastern Dragon will assist in the completion of development and advancement to full production, Eldorado said.
Located in the Heilongjiang Province in China, Eastern Dragon has proven and probable gold reserves of 764,000 ounces, measured and indicated gold resources of 852,000 ounces and an inferred gold resource of 190,000 ounces. Production is estimated at 70,000 ounces of gold per annum with an expected mine life of 11 years, Eldorado said, based on current proven and probable reserves. Capital cost to complete development is estimated at $45m.
Earlier this month CDH was reported to have raised $2.55bn for its fifth buyout fund, while in January of this year the firm was said to be on its way to exceeding its $2.5bn hard cap.
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