Eldorado Gold to Merge with Foran Mining in C$3.8 Billion Major Metals Consolidation

In a landmark development for the precious metals industry, Eldorado Gold announced the acquisition of Foran Mining in a transaction valuing the latter at approximately C$3.8 billion. The merger, structured as a court-approved plan of arrangement, represents a pivotal consolidation designed to establish a formidable gold-copper producer positioned for immediate growth and robust cash flow generation capabilities.

Strategic Combination Creates Major Gold-Copper Producer

The transaction establishes a powerful alliance bringing together two fully financed development-stage projects positioned for imminent commercial production. Eldorado shareholders will maintain approximately 76% ownership in the combined entity, while Foran shareholders will hold about 24%. Under the agreement terms, each Foran shareholder will receive 0.1128 Eldorado shares plus $0.01 cash per Foran share held, representing an 8% premium based on the respective 20-day volume-weighted average prices calculated through January 30.

Foran Mining Executive Chair and CEO Dan Myerson is set to join Eldorado’s board of directors upon transaction completion. Following the expected closing in the second quarter of 2026, Foran shares will be delisted from both the TSX and OTCQX trading venues, consolidating shareholder bases and streamlining corporate governance.

Twin Development Projects Set for Mid-2026 Production Launch

The combined enterprise will leverage two strategically important assets: Skouries, a gold mining project in Greece, and McIlvenna Bay, a copper-gold development site in Saskatchewan, Canada. Both operations maintain schedules and budgets aligned for mid-2026 production commencement, representing a substantial acceleration in the combined company’s revenue generation timeline. This synchronized development approach eliminates staggered launch delays and positions the merged entity for coordinated operational ramp-up.

The portfolio expansion extends Eldorado’s geographic footprint across Canada, Greece, and Türkiye, providing jurisdictional risk mitigation through geographic diversification and commodity exposure balancing. The production mix will feature approximately 77% gold, 15% copper, and 8% other metals, offering meaningful commodity diversification benefits in volatile precious metals markets.

Projected Financial Metrics Point to Substantial Cash Generation

The pro-forma company is positioned to deliver approximately 900,000 gold-equivalent ounces of annual production by 2027, representing a substantial scale increase. Projected EBITDA generation is expected to reach approximately $2.1 billion, with free cash flow delivery anticipated at roughly $1.5 billion. These financial metrics underscore the strategic rationale for the combination and demonstrate the substantial value creation potential for a combined shareholder base.

Deal Structure and Shareholder Composition

The transaction strengthens Eldorado’s Canadian operational exposure and incorporates Foran’s high-grade Tesla exploration zone into the combined asset portfolio. This addition expands near-term exploration upside and enhances longer-term value creation prospects. The fully financed status of both development projects eliminates funding risks typically associated with major capital deployment in mineral development.

Market Response

Pre-market trading activity reflected investor sentiment divergence. Eldorado Gold shares declined 4.19% to $41.11 on the New York Stock Exchange, while Foran Mining closed Friday’s session down 7.18% at CAD 6.59 on the Toronto Stock Exchange. Market reactions typically reflect short-term trading dynamics as investors process the implications of the newly announced combination structure.

The transaction is anticipated to conclude in the second quarter of 2026, culminating a significant consolidation within the precious metals development sector and establishing a new mid-tier producer capable of generating substantial shareholder value through integrated operations and diversified asset exposure.