Investors Shrug Off Eldorado Gold's $300 Million Asset Sale

Shares of Eldorado Gold Corp EGO were trading flat on Tuesday following the company's announcement of a $300 million asset sale.

Eldorado Gold said it reached an agreement to sell its 82 percent stake in its China-based Jinfeng mine to a subsidiary of China National Gold Group for $300 million in cash. The company noted its asset sale is consistent with an ongoing evaluation of monetizing its Chinese assets.

The transaction is expected to close in the third quarter of 2016.

"We are pleased to have reached an agreement which we believe mutually benefits both companies. China National Gold has been our minority partner at Jinfeng for over fourteen years and is the logical buyer as the operation transitions fully into the underground," said Paul Wright, President and Chief Executive Officer of Eldorado Gold. "Since commencement of production in 2007, Jinfeng has consistently delivered solid operating results and has been a strong contributor in Eldorado's global portfolio."