Gold miner Sino Gold Mining Ltd
(ASX:SGX) says the Foreign Investment Review Board has approved a takeover of the company by Canada’s Eldorado Gold Corporation.
Sino Gold says the approval satisfies a condition of the scheme of implementation deed between the two companies.
Eldorado announced a business combination in August to acquire all the issued shares in Sino Gold via a scheme of arrangement.
The Sydney Morning Herald says the merged company will have a market cap of around US$6 billion, gold reserves of 12 million ounces and resources of 23 million ounces.
Eldorado is offering 0.55 Eldorado shares for each Sino Gold share, which values the company at approximately $2.2 billion.
Sino Gold’s board has backed the proposal. Sino Gold Mining has posted net losses in the last five years.
