(www.investorideas.com
Newswire) – Investorideas.com a leading investing platform, reports on breaking mining stock news as gold and silver prices recover from a massive sell-off.
Eldorado Gold Corporation (TSX: ELD) (NYSE: EGO) and Foran
Mining Corporation (TSX: FOM, OTCQX: FMCXF) are pleased to
announce that they have entered into an agreement whereby Eldorado
will acquire Foran to create a sector-leading gold-copper mining
company with significant near-term growth, strong cash flow
generation, long-life assets, and a diversified portfolio. This
positions Eldorado to benefit from robust metal prices and rising
demand for critical minerals. By bringing together two high-quality,
fully financed development assets – Skouries in Greece and
McIlvenna Bay in Saskatchewan, Canada – which are both on
budget and on schedule to achieve commercial production in mid-2026,
the combined company will offer a clear and compelling re-rate
opportunity. With a diversified asset base anchored in Canada and a
peer-leading exploration pipeline, the combined company is designed
to generate resilient, long-term cash flows capable of self-funding
sustained growth.
Both stocks are trading down as of this report.
News:
Transaction Overview
Eldorado and Foran have entered into a definitive agreement (the
“Arrangement Agreement”) pursuant to which Eldorado will acquire all
of the issued and outstanding common shares of Foran (the “Foran
Common Shares”), including those Foran Common Shares to be issued on
conversion of the non-voting shares of Foran (the “Foran Non-Voting
Shares”, and together with the Foran Common Shares, the “Foran
Shares”), other than the Foran Shares already owned by Eldorado or
its affiliates, by way of a court-approved plan of arrangement (the
“Transaction”). Pursuant to the terms of the Arrangement Agreement,
Foran shareholders will receive 0.1128 common shares of Eldorado
(each whole share, an “Eldorado Share”) and $0.01 in cash for each
Foran Share held (the “Consideration”), representing an 8.0% premium
to the 20-day volume-weighted average trading price (“VWAP”) of the
Foran Common Shares, based on the 20-day VWAP of the Eldorado Shares
for the period ended January 30, 2026, and, following the recent
increase in Foran’s share price, represents a nil premium to the
closing price of the Foran Common Shares on the Toronto Stock
Exchange (“TSX”) on January 30, 2026 implying an equity value for
Foran of approximately C$3.8 billion. Upon completion of the
Transaction, existing Eldorado and Foran shareholders will own
approximately 76% and 24% of the combined company, respectively.
Strategic Rationale: A New Global Gold-Copper Leader
Peer-leading near-term growth: Positioned to deliver a leading
growth profile, underpinned by two fully financed development
projects – Skouries and McIlvenna Bay advancing toward
commercial production in mid-2026. Expected to produce approximately
900k gold equivalent ounces in 2027(1).
Substantial EBITDA & free cash flow: Expected to generate
approximately $2.1 billion of EBITDA(2) and $1.5 billion in free
cash flow(3) in 2027. This robust long-term cash flow will fund
growth initiatives, strengthen balance sheet, and support continued
shareholder returns through dividend and share buyback programs,
while maintaining financial flexibility through commodity cycles.
Long-life, diversified asset base: Combined portfolio delivers
balanced gold-copper exposure (~77% gold, ~15% copper, ~8% other
metals) across attractive mining jurisdictions in Canada, Greece,
and Türkiye, providing jurisdictional and commodity
diversification.
Significant exploration upside: Eldorado will continue to accelerate
high-value organic growth opportunities. This includes advancing
Foran’s high-grade polymetallic Tesla zone as well as maximizing the
exploration potential surrounding Eldorado’s existing operating and
development assets.
Compelling re-rate opportunity: With increased scale and trading
liquidity, near-term growth and enhanced Canadian exposure the
combination will support a valuation re-rate opportunity.
Sustainability-focused operations: Strong alignment across
sustainability principles, carbon efficient practices, and a shared
commitment to responsible mining will enable the combined company to
focus on transparent sustainability performance and continued
advancement in GHG emissions mitigation.
Leadership Commentary
eorge Burns, Chief Executive Officer 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. 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. 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. We’re excited about the opportunity to contribute to the
province’s continued success. Strong cultural and sustainability
alignment, together with operations in Canada, Greece, and
Türkiye create a stronger, more resilient platform for decades
to come.”
Steven Reid, Chair of the Board of Eldorado commented “The Board of
Eldorado is pleased to welcome Dan Myerson to the Eldorado Board of
Directors on completion of the transaction. Together, George and Dan
will provide valuable continuity, operational experience and capital
markets experience to the Board and Eldorado. During 2026 the Board
will embark on a process specifically to advance its board
succession program.”
Dan Myerson, Executive Chair and Chief Executive Officer of Foran
said “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. Having advanced through the risk
curve associated with development, the company is fast approaching
an inflection point towards enhanced free cash flow and production
growth. I look forward to being actively involved in supporting a
compelling strategy that creates an unmatched opportunity for growth
and scale. We share a belief that people are the most important
asset, and that disciplined execution and a relentless focus on
value creation are what enable durable, generational success.”
Full news
https://ca.finance.yahoo.com/news/eldorado-gold-acquire-foran-mining-120916497.html
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