June 3, 2009 (FinancialWire) — Gold Fields Ltd. (NYSE: GFI) has agreed to sell its current 19.9% stake in Sino Gold Mining Ltd. to Eldorado Gold Corp. (AMEX: EGO) (TSX: ELD) for a total of around $282 million.

Sino Gold has been active in China since 1996 and owns 82% of the Jinfeng gold mine in Guizhou Province, southern China, which claims mineral resources containing 4.6 million ounces and ore reserves containing 3.2 million ounces.

Under the deal, Gold Fields will receive a share exchange ratio of 48 Eldorado shares for every 100 Sino Gold shares, which will result in Gold Fields holding 27,824,654 Eldorado shares or around 7% of the outstanding shares of Eldorado on a fully diluted basis.

Gold Fields will also hold a top-up right for a period of 18 months, which will apply should Eldorado purchase an additional 5% or more of the outstanding shares of Sino Gold and the sellers in that transaction realize a consideration ratio in excess of the share exchange ratio of 0.48 Eldorado shares per Sino Gold share received by Gold Fields.

Nick Holland, the CEO of Gold Fields, said that his company had received “several expressions of interest” for its stake in Sino Gold, and said that the deal “has enabled us to crystallise the value of our investment while retaining exposure to China as a potential area for the future.”

South Africa-based Gold Fields is a producer of gold with total attributable ore reserves of 83 million ounces and mineral resources of 251 million ounces.

Canada-based Eldorado is a gold producing, exploration and development company active in Brazil, China, Greece, and Turkey and surrounding regions.

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