Eldorado Gold to acquire Foran Mining in $2.78bn deal

Core Viewpoint - Eldorado Gold intends to acquire Foran Mining in a merger valued at approximately C$3.8 billion ($2.78 billion), aiming to create a stronger gold-copper mining company that capitalizes on high metal prices and demand for critical minerals [1][2]. Group 1: Transaction Details - The acquisition 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 [2]. - Post-merger, Eldorado will own a 76% stake in the combined entity, while Foran shareholders will retain 24% [2]. - The merged entity aims for a production target of approximately 900,000 gold equivalent ounces by 2027 [2]. Group 2: Financial Projections - Expected EBITDA for the merged entity is projected at $2.1 billion, with free cash flow anticipated to reach $1.5 billion in 2027 [3]. - These financial resources are intended to support growth initiatives and enhance shareholder returns [3]. Group 3: Strategic Implications - The combined company is expected to maintain its headquarters in Vancouver, British Columbia, and will operate under the Eldorado Gold name [3]. - Eldorado Gold's CEO highlighted that the merger will create a stronger growth company with significant cash flow generation and multiple catalysts, particularly with projects like Skouries and McIlvenna Bay set to come online in 2026 [5].