Eldorado Gold has announced its intention to acquire Foran Mining through a merger agreement valued at approximately C$3.8bn ($2.78bn), forming a gold-copper mining company.
This strategic move aims to leverage strong metal prices and growing demand for critical minerals.
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The combined entity, which will integrate development assets in Greece and Canada, is projected to commence commercial production by mid-2026, with plans to ensure long-term cash flow and sustained growth.
The transaction will be executed through a court-sanctioned plan of arrangement under the Business Corporations Act (British Columbia) and is expected to conclude in the second quarter of 2026.
Post-merger, Eldorado will hold a 76% ownership stake in the combined entity, while Foran shareholders will retain the remaining 24%.
The strategic move promises significant growth and profitability, with a production target of around 900,000 gold equivalent ounces in 2027.
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By GlobalDataExpected earnings before interest, taxes, depreciation and amortisation (EBITDA) are projected at $2.1bn, with free cash flow reaching $1.5bn in the same year.
These funds are intended to support growth initiatives and shareholder returns.
The merged entity plans to maintain its headquarters in Vancouver, British Columbia, continuing operations under the Eldorado Gold name.
Foran securityholders will vote on the transaction at a special meeting anticipated by 14 April 2026.
Financial advice for Eldorado is being provided by BMO Capital Markets, while RBC Capital Markets delivered an independent fairness opinion.
Legal counsel is being handled by Blake, Cassels & Graydon for Eldorado and Fasken Martineau DuMoulin for its special committee.
On Foran’s side, financial advisory services are being provided by Morgan Stanley Canada and others; Stifel Nicolaus Canada provided a fairness opinion.
Eldorado Gold CEO George Burns said: “This combination creates a stronger gold and copper growth company, defined by near-term cash flow generation and multiple catalysts.
“With Skouries and McIlvenna Bay scheduled to come online in 2026, the combined business is positioned for a step-change in production, cash flow and global relevance.”
In July 2024, Eldorado signed a definitive option agreement with TRU Precious Metals to earn an 80% ownership interest in TRU’s Golden Rose gold-copper project in Newfoundland, Canada.
