Eldorado Buys Brazauro

Canada-based LatAm miner Eldorado Gold says it is acquiring all of the outstanding common shares of Brazil-focused Brazauro Resources in an exchange valued at CAD122.4m ($120m). The buyer says each Brazauro share will be exchanged for 0.0675 Eldorado shares. Both companies trade on the TSX. As part of the deal, Eldorado is buying Brazauro’s Tocantinzinho project in Brazil, a late stage exploration project, and 2 earlier stage exploration projects, Agua Branca and Piranhas, located near Tocantinzinho. The rest of Brazauro’s exploration efforts will form part of a new company to be called New Brazauro. Eldorado has agreed to fund the new venture with CAD10m, which is already included in the deal value. Eldorado’s financial advisor is GMP Securities and its legal advisor is Fasken Martineau DuMoulin in Canada and Dorsey & Whitney in the US. Brazauro’s financial advisor is BMO Capital Markets and its legal advisor is Blake, Cassels & Graydon in Canada and Shearman & Sterling in the US.