Australia’s Sino Gold, which is in the vanguard of western gold miners’ drive to gain a foothold in China, has agreed to be acquired by Eldorado Gold of Vancouver in a C$2bn (US$1.8bn) all-share deal.

Paul Wright, Eldorado chief executive, described the acquisition as the culmination of a five-year drive to expand in China, drawing on lessons Eldorado has learned from its operations in Turkey.