Eldorado to buy Foran Mining for $2.8B amid copper push
Eldorado Gold (TSX: ELD) (NYSE: EGO) has agreed to buy fellow Canadian miner Foran Mining (TSX:FOM) (OTCQX:FMCXF) in a transaction that values the copper-focused developer at about C$3.8 billion ($2.8 billion).
The acquisition will expand Eldorado’s copper footprint while adding a second near-term growth project as demand for the metal rises alongside electrification and clean energy investment.
The deal brings Eldorado’s Skouries gold-copper project in Greece and Foran’s McIlvenna Bay copper project in Saskatchewan into one portfolio, both targeted for commercial production in mid-2026. Eldorado said the enlarged group could produce about 900,000 gold-equivalent ounces in 2027.
Once combined, the company’s asset base is expected to have roughly 77% exposure to gold and 15% to copper, with operating mines and development projects in Canada, Greece and Turkey.
Eldorado expects the merged business to generate about $2.1 billion in core profit and $1.5 billion in free cash flow in 2027. The miner also plans to increase exploration spending across the portfolio, including at Foran’s Tesla zone in Saskatchewan.
Shares in Eldorado closed 8.9% lower in New York while Foran Mining was down 5.2% at the Toronto close.
Deal insights
Under the terms of the agreement, Foran shareholders will receive 0.1128 Eldorado shares plus $0.01 per share, giving them about 24% of the combined company. The transaction is expected to close in the second quarter of 2026.
“This transaction gives McIlvenna Bay the scale and financial strength to fully realize its potential, including the ability to accelerate phased expansion opportunities over time,” Foran chief executive Dan Myerson said in the statement.
The combined company will remain headquartered in Vancouver under the Eldorado Gold name.
McIlvenna Bay is expected to become a cornerstone Canadian asset alongside Eldorado’s Lamaque Complex in Quebec, supporting long-term employment and economic activity in Saskatchewan and across Canada, the company said.
The project has been recognized by the federal government as a critical minerals development and referred to the new Major Projects Office as a project of national interest.
Both boards have unanimously approved the transaction, and shareholder votes are scheduled by April 14, the companies said.
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3 Comments
Edward HC Graydon
Over the last few years long before Mark Carney came along I had family members who really put effort into exploring what Foran Mining was trying to become . I personally own the stock along with some other family members .At times that stock would tank after being diluted,I mean it was really hard to take to the downside we have played this stock for years and some within my family unit made returns most could only dream of by playing the daily fluctuations ,that’s great if you have that ability. I personally don’t like to trade the fluctuations in price as it is not conducive to what I am like and does not fit my thinking pattern .
I don’t have a problem with the merger between Foran Mining and Eldorado Gold ,I take issue that the Foran Mining board decide to not take or accept a premium . For those that have owned the stock that are not a mutual fund or large in size like Fairfax, Black Rock and Agnico Eagle that also happen to be shareholders it would have been nice to have been rewarded for participation by way of actually accepting a premium on behalf of smaller shareholders, we will see how this plays out but overall it feels good to me but it is hard to navigate the possible outcomes as nothing more than a shareholder with no access to certain information .Really all involved just need Copper, Gold and silver to take off while also considering the side effects of all electric mining as a possible problem in the future given the hazards of EV fires and how this might set back progress if something where to happen.
Edward HC Graydon
The amount of Silver Foran and Eldorado Gold produce is quite minimal compared to the short fall that the world now finds itself with . Because the banks don’t hold Silver or enough to fill the purchases of futures contracts as most don’t take delivery ..There is such a shortage of silver that the Shanghai price is trading at $95 not $78 like on the comex . I think silver will be frozen on Monday because they cannot fill the orders… The comex from my understanding does not have the silver to fill the orders at any price because they don’t have the silver and are short millions of ounces .They loaned out on paper what they actually did not own ,fraud really to some extent intentional .
The fractional reserve system is not only in retail banking but also in the precious metals market . It will be similar in nature to a bank run in my opinion only in this case because the comex cannot fill the orders and the spread is $12 at the moment and silver for spot is closer to $90 I think Silver on the comex paper price is going to hit $120 on Monday and many will be locked out and unable to participate and unable to purchase . Now, because I think the comet cannot fill silver orders on Monday or at least might halt silver trades while the world tries and scrambles to find the hard asset as right now silver on paper is $78 but Shanghai is $90 the merger between Foran Mining and Eldorado Gold could not have come at a better time . The shorts will now have to go long .
Edward HC Graydon
It is interesting to me that at the moment Foran Mining is trading above the agreed purchase price of $6.58 and is currently trading at $6.61 and the high today so far has been $6.62 ! How high can the premium go over the agreed upon price as one might have assumed after the agreement Foran mining would have stoped trading at $6.58. The major share holders are the elite in Canadian mining and well versed on how this transaction is going to play out but if I might suggest to there accounts that regardless of being in favour of this merger, I believed that when out of no where smaller shareholders were informed of the merger it became past tense making any response by myself difficult to comprehend ,as I believed $6.58 was a form of forced capitulation but I was wrong the stock it trading above the announced price by both Eldorado Gold and Foran mining .
I think this is such a telling sign of what? I do not know ! But it is interesting as a shareholder to the unknowns .