Sino Gold Mining Ltd is one step away from being taken over by Canada's Eldorado Gold Corporation after the target's shareholders voted in favour of the deal at meetings in Sydney on Wednesday.
Shares in the China-focused Sino Gold closed 47 cents, or 5.94 per cent, higher at $8.38.
"Our shareholders today overwhelmingly approved the combination of Sino Gold and Eldorado Gold, with 99.81 per cent of votes cast in favour of the merger proposal," Sino Gold chairman Jim Askew said in a statement on Wednesday.
He said Eldorado would have an extremely valuable franchise as the only international gold company currently operating in China, the largest gold producing country in the world.
If approved, Sino Gold's shares will be suspended from trading on the Australian and Hong Kong bourses at the end of that day's session.
Mr Askew said gold production from the combined group was targeted to grow to a pro forma target of 850,000 ounces from six mines in 2011.
"Our shareholders are able to continue to benefit from Sino Gold's quality gold assets in China, as well as participating in the scale, scope and growth profile provided by Eldorado as a leading low-cost intermediate-tier gold producer," he said.
Toronto Stock Exchange-listed Eldorado launched the bid in August, offering 0.55 of its shares for each Sino Gold share, saying this valued the target at about $C2 billion ($A2.06 billion).
The Foreign Investment Review Board approved the deal in October.
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