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Friday, September 3, 2010

Eldorado to Merge with Andean Resources

Eldorado Gold Corp (TSX: ELD, NYSE: EGO) plans to merge with gold and silver producer Andean Resources (TSX: AND). Eldorado is offering 0.31 of eldorado shares for each Andean share. The proposal values the company at $3.4 billion dollars, which is approximately as 30% premium to yesterday's closing price. The merger would increase Eldorado's gold and silver reserves, and allow the company to continue to be a low cost gold producer.