UPDATE 1-Eldorado to acquire Brazauro in all-stock deal,

* Deal vales Brazauro at C$1.22 a share

* Deal will expand Eldorado’s asset base in Brazil

TORONTO, May 12 (BestGrowthStock) – Eldorado Gold Corp (ELD.TO: )
said on Wednesday it has agreed to acquire gold exploration
company Brazauro Resources Corp (BZO.V: ) in an all-stock deal
worth about C$122 million that will expand its asset base in

The deal will give the Canadian gold miner full control of
the Tocantinzinho Project in Tapajos, Brazil. In addition,
Eldorado will also acquire two exploration projects, Agua
Branca and Piranhas, which are located close to the
Tocantinzinho Project.

In July 2008, Eldorado had signed an option agreement with
Brazauro under which it could earn up to a 75 percent interest
in the Tocantinzinho Project that currently has a measured and
indicated resource of 1.9 million ounces of gold.

Eldorado has offered to pay 0.0675 of an Eldorado share for
each Brazauro share. Based on Eldorado’s closing price on
Tuesday, the deal values Brazauro at C$1.22 a share, or a 76
percent premium to its closing price on Tuesday.

Following the close of the transaction, Eldorado plans to
spin out a new Brazauro that will contain certain exploration
properties currently owned by Brazauro.

Eldorado said the transaction is expected to close by July
15, subject to customary court, regulatory and shareholder

Eldorado already owns 14.3 million shares and 4.9 million
warrants of Brazauro that represent about 17.2 percent of
Brazauro on a fully diluted basis.

Stock Market Analysis
(Reporting by Euan Rocha, editing by Dave Zimmerman)

UPDATE 1-Eldorado to acquire Brazauro in all-stock deal,