Frontier agrees to higher bid from Eldorado

Frontier Pacific Mining Corp. has agreed to a sweetened bid from Eldorado Gold Corp., the companies said yesterday, paving the way for the takeover deal to proceed. In addition to the original offer of 0.122 Eldorado shares for each Frontier share - worth about $170-million at current prices - shareholders will also receive one exchange receipt per Frontier share, which entitles them to 0.008 of an Eldorado share. The exchange receipt is conditional on the Greek Joint Ministerial Council approving environmental terms for Frontier's Perama Hill gold project by July 1, 2009. Perama is Frontier's main asset. Factoring in the exchange receipt, Eldorado's offer values each Frontier share at $1.09, and the company at $179-million, according to Reuters data. FRP (TSXV) rose 3 cents to $1.03 and ELD (TSX) rose 9 cents to $8.56.