Sino Gold has moved closer to being taken over by Canada’s Eldorado Gold Corporation after its shareholders voted in favour of the deal.
At a meeting in Sydney yesterday, Sino shareholders voted for a scheme under which Eldorado will acquire all Sino shares that it does not currently own.
The deal also involves option scheme under which all Sino options will be cancelled in return for the payment of scheme consideration to Sino security holders.
Sino Gold chairman Jim Askew said that the deal will provide his company’s shareholders with access to benefits from both Sino and Eldorado.
“Our shareholders are able to continue to benefit from Sino Gold’s quality gold assets in China, as well as participating in the scale, scope and growth profile provided by Eldorado as a leading low-cost intermediate tier gold producer,” he said in a statement.
“Gold production from the combined group is targeted to grow to a pro forma target of 850,000 ounces from six mines in 2011.
“Today’s vote provides a strong endorsement of the compelling business logic of merging Sino Gold with Eldorado in order to create further value for shareholders.”
Sino said it will apply to the Federal Court for orders approving the schemes at a hearing scheduled for 4 December.