Eldorado Gold Strikes $2.78 Billion Deal to Acquire Foran Mining, Forging a New North American Metals Contender
In a move set to reshape the mid-tier mining landscape, Eldorado Gold Corp. (NYSE: EGO) has entered into a definitive agreement to acquire all issued and outstanding shares of Foran Mining Corporation (TSX: FOM) in a transaction valued at approximately C$3.8 billion (US$2.78 billion). The deal, announced Monday, aims to create a diversified, growth-oriented gold and copper producer with a robust pipeline of near-term production assets.
The acquisition terms offer Foran shareholders 0.1128 of an Eldorado share plus C$0.01 in cash for each Foran share held. Upon completion, existing Eldorado and Foran shareholders will own approximately 76% and 24% of the combined company, respectively. The transaction is subject to regulatory and shareholder approvals and is expected to close in the second quarter of this year, after which Foran shares will be delisted from the Toronto Stock Exchange.
"This is a transformative combination that brings together two highly complementary asset portfolios," stated George Burns, President and CEO of Eldorado Gold. "We are uniting Eldorado's advanced-stage Skouries project in Greece with Foran's flagship McIlvenna Bay development in Saskatchewan. This creates a company with clear pathways to significant cash flow generation starting in 2026, multiple growth catalysts, and a balanced commodity exposure crucial for the energy transition."
The merged company's cornerstone assets—the Skouries copper-gold mine and the McIlvenna Bay critical minerals project—are both slated to commence commercial production by mid-2026. The combined portfolio is projected to be weighted 77% to gold, 15% to copper, and 8% to other metals. By 2027, the entity is anticipated to produce roughly 900,000 gold equivalent ounces and generate about $2.1 billion in EBITDA.
Foran's leadership highlighted the strategic benefits for its key project. "Partnering with Eldorado provides McIlvenna Bay with the operational scale and financial muscle needed to unlock its full potential," said Dan Myerson, Executive Chair and CEO of Foran Mining. "This includes the capacity to accelerate future phased expansions in one of Canada's most promising mining districts."
Market reaction was mixed, with Eldorado's U.S.-listed shares falling 9.1% on the announcement day, potentially reflecting investor scrutiny over the acquisition premium and integration execution.
Analyst & Investor Commentary:
"This is a logical step for Eldorado," commented Michael Thorne, a portfolio manager at Horizon Capital. "It diversifies their geopolitical risk beyond Europe and adds a tier-one jurisdiction asset in Canada. The combined production profile and EBITDA targets for 2027 are compelling, if they can deliver on schedule and budget."
"I'm deeply skeptical," argued Clara Jensen, a veteran mining analyst known for her critical stance. "Eldorado is taking on a massive, complex development project in a different jurisdiction right as it's finally nearing production at Skouries. Shareholders are paying a hefty price, and the stock drop tells you all you need to know about market sentiment. This feels like empire-building over disciplined capital allocation."
"From a Saskatchewan perspective, this is excellent news," said David Chen, an investment banker specializing in resource deals. "It ensures McIlvenna Bay has a well-capitalized, experienced operator to bring it online. The critical minerals angle, particularly the copper, makes this a strategically important asset for North American supply chains, and Eldorado has the balance sheet to develop it properly."