Eldorado Gold Forges C$3.8 Billion Deal for Foran Mining, Paving Way for Major 2026 Output Boost

Eldorado Gold Forges C$3.8 Billion Deal for Foran Mining, Paving Way for Major 2026 Output Boost

In a move set to reshape the mid-tier mining landscape, Eldorado Gold (NYSE: EGO) announced a definitive agreement to acquire Foran Mining in an all-stock deal valued at approximately C$3.8 billion. The transaction, presented as a strategic merger of equals, aims to create a larger, more diversified precious and base metals producer poised for a significant production surge starting in 2026.

Under the terms of the agreement, Foran shareholders will receive 0.1128 Eldorado shares for each Foran share held. Upon completion, expected in the second quarter of 2026, Eldorado shareholders will own about 76% of the combined entity, with Foran shareholders holding the remaining 24%. The deal has already secured support agreements from all Foran directors and officers.

"This combination is a transformative step in building a stronger, more competitive global mining company," stated Eldorado CEO George Burns during a joint conference call. He emphasized the complementary nature of the assets, which include long-life projects and a strengthened balance sheet, while expanding Eldorado's footprint in the stable mining jurisdiction of Canada.

Dual Engines for Growth: Skouries and McIlvenna Bay

The core strategic rationale hinges on two fully financed, construction-advanced projects scheduled to enter production in 2026: the Skouries copper-gold project in Greece and the McIlvenna Bay polymetallic project in Saskatchewan, Canada.

Foran's McIlvenna Bay, reported to be 85% complete at the end of 2025 and currently in wet commissioning, is targeting commercial production by mid-2026. Eldorado President Christian Milau highlighted that the project adds meaningful copper exposure to the portfolio, with copper expected to contribute roughly 15% of revenues by 2027. Despite this, the combined company will remain predominantly a gold producer, with pro forma gold output estimated at 77%.

"The metal mix at McIlvenna Bay—gold, copper, zinc, silver—perfectly aligns with the metals already in our portfolio," Burns noted, addressing potential investor questions about diversification into base metals. "It's a perfect match from both a commodity and a strategic perspective."

The Skouries project is anticipated to produce approximately 140,000 ounces of gold and 67 million pounds of copper annually over a 20-year mine life. Management detailed extensive de-risking efforts for Skouries, including increased test stope programs to confirm geotechnical models.

Financial Transformation and "Rerating" Potential

Management painted a picture of dramatic financial improvement. The combined company is forecast to boost production by 80% to over 900,000 gold equivalent ounces by 2027. Consensus estimates, cited by Milau, point to nearly $1.5 billion in free cash flow and over $2 billion in EBITDA in 2027 at current price assumptions.

"We are approaching a significant inflection point marked by rising production and substantial free cash flow generation," said Foran Executive Chairman and CEO Dan Myerson. The pro forma company is expected to boast a robust balance sheet with approximately $1.5 billion in cash and minimal net debt of around $90 million.

Leadership from both companies argued that this enhanced scale, diversification, and improved margin profile should support a potential "market rerating" for the combined entity, moving it closer to the valuation multiples of larger peers.

Expert Commentary

Michael Thorne, Resource Sector Analyst at Veritas Capital: "This is a logical consolidation. Eldorado acquires a near-production asset in a top-tier jurisdiction that complements its existing metals mix. The projected 2027 cash flow numbers are compelling if they can execute on time and on budget. The key will be integrating the operations seamlessly."

Sarah Chen, Portfolio Manager at Horizon Investments: "I'm cautiously optimistic. The industrial logic is there, and the combined project pipeline is impressive. However, a 2026 closing date is a long time in the mining world. Shareholders are being asked to wait patiently while execution and metal price risks remain. The premium paid seems to bank heavily on future expansion like the Tesla Zone, which is still exploratory."

David Forsythe, Editor at The Critical Miner Blog: "Another 'transformative' deal that primarily transforms executive pay packages. Eldorado is paying a hefty premium for a project (McIlvenna Bay) that has already faced wildfire disruptions and is in a notoriously tough jurisdiction for permitting expansion. Promising $1.5 billion in free cash flow two years before the deal even closes is speculative at best. This feels like a Hail Mary pass to justify Eldorado's own stagnant growth narrative."

Eleanor Vance, Senior Geologist & Independent Consultant: "The geological and operational fit is excellent. Both companies have strong technical teams with a focus on responsible mining. Combining their expertise, particularly in volcanogenic massive sulphide (VMS) deposits like McIlvenna Bay, could unlock real synergies and smarter exploration around existing infrastructure, such as the high-potential Tesla Zone."

The companies confirmed they do not anticipate requiring approval from Investment Canada or other overseas regulatory bodies for the transaction, expecting it to proceed as a plan of arrangement. Shareholder votes are scheduled for on or around April 14, 2026.