There’s about to be one less developer listed on the market, with yet another M&A deal announced this morning. Eldorado Gold (TSX: ELD) and Foran Mining (TSX: FOM) have reached a definitive agreement, whereby Eldorado will acquire Foran as part of an effort to establish a sector-leading gold and copper miner.
The acquisition of Foran will see Eldorado add a second major development project to it’s portfolio, with the company to now boast both the Skouries project in Greece and the McIlvenna Bay project in Saskatchewan as near-term producing assets within its portfolio. Both projects are expected to enter production by the midpoint of this year, driving a potential re-rating opportunity for Eldorado.
With both projects set to come online this year, Eldorado is forecasting that their production profile will hit 900,000 ounces of gold equivalent in 2027, with EBITDA of $2.1 billion and free cash flow of $1.5 billion. That cash flow is expected to strengthen the balance sheet and support shareholder returns via both buybacks and dividends. The production mix meanwhile is expected to consist of 77% gold, 15% copper, and 8% other metals.
“This combination creates a stronger gold and copper growth company, defined by near-term cash flow generation and multiple catalysts. It is supported by a portfolio of long-life assets, exceptional exploration upside, and meaningful exposure to critical minerals across a well-balanced, multi-jurisdictional portfolio. With Skouries and McIlvenna Bay scheduled to come online in 2026, the combined business is positioned for a step-change in production, cash flow, and global relevance,” commented George Burns, CEO of Eldorado Gold.
The resulting company is expected to remain headquartered in Vancouver, BC, under the Eldorado Gold name, with the company stating that they intend to “expand and accelerate” domestic exploration and development activities. Foran’s Dan Ryerson is also expected to join Eldorado’s board of directors as part of the arrangement.
Under the terms of the arrangement, Foran shareholders will receive 0.1128 common shares of Eldorado and $0.01 in cash for each share of Foran held. Based on Friday’s closing prices, the figure represents $6.59 in compensation on a per share basis, meaning no premium has been provided to Foran shareholders. The deal meanwhile values the company at $3.8 billion, with Foran shareholders set to hold 24% of the resulting company.
The transaction remains subject to shareholder and customary regulator approvals, with closing of the transaction expected to occur in Q2 2026.
Eldorado Gold last traded at $58.42 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
