Eldorado Gold Corporation (NYSE:EGO) announced on Monday that the company has agreed to acquire Foran Mining Corporation in a deal valued at about 3.8 billion Canadian dollars (roughly $2.8 billion).
As per the deal, Eldorado will acquire all outstanding Foran common shares, except those already held by Eldorado or its affiliates, through a court-approved plan of arrangement.
Foran shareholders will receive 0.1128 Eldorado common shares plus one cent in cash per Foran share. This represents an 8% premium to the 20-day volume-weighted average price of Foran shares.
Post closure, Eldorado shareholders will own about 76% of the combined company, with Foran shareholders holding the remaining 24%.
The transaction is expected to close in the second quarter of 2026.
Combined Company
The combined portfolio is expected to have a balanced exposure to gold and copper (~77% gold, ~15% copper, ~8% other metals) across Canada, Greece, and Türkiye.
The combined company is expected to benefit from two fully financed development projects, Skouries and McIlvenna Bay in Canada.
The projects are on track for commercial production by mid-2026, with expected output of around 900,000 gold-equivalent ounces in 2027.
The merged company is well-positioned to benefit from strong metal prices and rising demand for critical minerals.
The combined company is projected to generate about $2.1 billion in EBITDA and $1.5 billion in free cash flow in 2027.
Synergies & Benefits
With this buyout, Eldorado plans to accelerate high-value organic growth, including developing Foran’s high-grade polymetallic Tesla zone and unlocking exploration potential around its existing operating and development assets.
George Burns, CEO of Eldorado, commented, “This combination creates a stronger gold and copper growth company, defined by near-term cash flow generation and multiple catalysts. It is supported by a portfolio of long-life assets, exceptional exploration upside, and meaningful exposure to critical minerals across a well-balanced, multi-jurisdictional portfolio.”
“Increasing our exposure to Canada, through an asset in Saskatchewan, consistently recognized as one of the world’s most attractive mining jurisdictions strengthens our portfolio.”
Dan Myerson, Executive Chair and Chief Executive Officer of Foran, added, “This transaction gives McIlvenna Bay the scale and financial strength to fully realize its potential, including the ability to accelerate phased expansion opportunities over time. Coupled with Skouries, this positions Eldorado to advance two world-class assets into production in short order.”
As of September 30, 2025, Eldorado has cash and cash equivalents of $1.0 billion.
Eldorado will release its fourth quarter and 2025 results on February 19, 2026.
EGO Price Action: Eldorado Gold shares were down 0.75% at $42.60 during premarket trading on Monday, according to Benzinga Pro data.