Eldorado Gold (TSX:ELD,NYSE:EGO) and Foran Mining (TSX:FOM,OTCQX:FMCXF) have agreed to combine in a share-based transaction that will create a larger, diversified gold and copper producer with two major development projects that are set to enter production in 2026.
Following completion under a court-approved plan of arrangement, Eldorado shareholders will own roughly 76 percent of the combined company, with Foran shareholders holding the remaining 24 percent.
The deal brings together two fully financed development assets: Eldorado’s Skouries project in Greece and Foran’s McIlvenna Bay project in Saskatchewan. Both are on schedule and on budget for commercial production by mid-2026.
The companies said the combined group is targeting production of around 900,000 gold equivalent ounces in 2027, supported by a portfolio weighted approximately 77 percent toward gold and 15 percent toward copper.
The remaining 8 percent will represent other metals.
"This combination creates a stronger gold and copper growth company, defined by near-term cash flow generation and multiple catalysts," said Eldorado CEO George Burns in a Monday (February 2) press release.
“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,” he added.
The firms expect the enlarged group to generate about US$1.1 billion in free cashflow in 2027, providing capacity to fund growth, support dividends and share buybacks and maintain balance sheet flexibility through commodity cycles.
The announcement comes as miners seek to lock in future supply sources for gold, copper and other critical minerals needed for the electrification of the global economy.
Eldorado’s deal follows several recent high-profile transactions, including last week's news that Zijin Gold International (HKEX:2259,OTCPL:ZJNGF) will acquire Allied Gold (TSX:AAUC,NYSE:AAUC) in a US$4.1 billion transaction.
Recent swings in the gold price after a record rally have also sharpened investor scrutiny of acquisition valuations, contributing to the rise of lower-premium deals across the sector.
The transaction is expected to close in Q2, subject to shareholder, court and regulatory approvals.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
