Investing.com -- Eldorado Gold Corporation (NYSE:EGO) stock fell 8.2% Monday after the company announced it would acquire Foran Mining Corporation (TSX:FOM) in a deal valued at approximately C$3.8 billion.
The transaction, which will create a combined gold-copper mining company, involves Foran shareholders receiving 0.1128 Eldorado shares and $0.01 in cash for each Foran share held. This represents no premium to Foran’s closing price on January 30 following a recent increase in Foran’s share price.
Upon completion, existing Eldorado and Foran shareholders will own approximately 76% and 24% of the combined company, respectively. The deal is expected to close in the second quarter of 2026, subject to shareholder and regulatory approvals.
The combined entity aims to benefit from two fully financed development projects – Skouries in Greece and McIlvenna Bay in Saskatchewan, Canada – both scheduled to achieve commercial production by mid-2026. According to the companies, the merged operation is projected to produce approximately 900,000 gold equivalent ounces in 2027.
Eldorado CEO George Burns emphasized the strategic benefits of the acquisition, noting it creates "a stronger gold and copper growth company, defined by near-term cash flow generation and multiple catalysts."
The transaction diversifies Eldorado’s portfolio with balanced exposure across gold (77%), copper (15%), and other metals (8%) in Canada, Greece, and Türkiye. The combined company expects to generate approximately $2.1 billion in EBITDA and $1.5 billion in free cash flow in 2027.
Dan Myerson, Foran’s Executive Chair and CEO, will join Eldorado’s Board of Directors following the completion of the transaction. The combined business will remain headquartered in Vancouver, British Columbia.
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