Breaking Mining Stock Acquisition News - Eldorado (TSX: ELD) acquires Foran (TSX: FOM ) to create a sector-leading gold-copper mining company

2026-02-02 12:42:00 ET

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Eldorado Gold Corporation (TSX: ELD) (NYSE: EGO)  and Foran Mining Corporation (TSX: FOM, OTCQX: FMCXF)  are pleased to announce that they have entered into an agreement whereby Eldorado will acquire Foran to create a sector-leading gold-copper mining company with significant near-term growth, strong cash flow generation, long-life assets, and a diversified portfolio. This positions Eldorado to benefit from robust metal prices and rising demand for critical minerals. By bringing together two high-quality, fully financed development assets – Skouries in Greece and McIlvenna Bay in Saskatchewan, Canada – which are both on budget and on schedule to achieve commercial production in mid-2026, the combined company will offer a clear and compelling re-rate opportunity. With a diversified asset base anchored in Canada and a peer-leading exploration pipeline, the combined company is designed to generate resilient, long-term cash flows capable of self-funding sustained growth.

Both stocks are trading down as of this report.

News:

Transaction Overview

Eldorado and Foran have entered into a definitive agreement (the "Arrangement Agreement") pursuant to which Eldorado will acquire all of the issued and outstanding common shares of Foran (the "Foran Common Shares"), including those Foran Common Shares to be issued on conversion of the non-voting shares of Foran (the "Foran Non-Voting Shares", and together with the Foran Common Shares, the "Foran Shares"), other than the Foran Shares already owned by Eldorado or its affiliates, by way of a court-approved plan of arrangement (the "Transaction"). Pursuant to the terms of the Arrangement Agreement, Foran shareholders will receive 0.1128 common shares of Eldorado (each whole share, an "Eldorado Share") and $0.01 in cash for each Foran Share held (the "Consideration"), representing an 8.0% premium to the 20-day volume-weighted average trading price ("VWAP") of the Foran Common Shares, based on the 20-day VWAP of the Eldorado Shares for the period ended January 30, 2026, and, following the recent increase in Foran's share price, represents a nil premium to the closing price of the Foran Common Shares on the Toronto Stock Exchange ("TSX") on January 30, 2026 implying an equity value for Foran of approximately C$3.8 billion. Upon completion of the Transaction, existing Eldorado and Foran shareholders will own approximately 76% and 24% of the combined company, respectively.

Strategic Rationale: A New Global Gold-Copper Leader

Peer-leading near-term growth: Positioned to deliver a leading growth profile, underpinned by two fully financed development projects – Skouries and McIlvenna Bay advancing toward commercial production in mid-2026. Expected to produce approximately 900k gold equivalent ounces in 2027(1).

Substantial EBITDA & free cash flow: Expected to generate approximately $2.1 billion of EBITDA(2) and $1.5 billion in free cash flow(3) in 2027. This robust long-term cash flow will fund growth initiatives, strengthen balance sheet, and support continued shareholder returns through dividend and share buyback programs, while maintaining financial flexibility through commodity cycles.

Long-life, diversified asset base: Combined portfolio delivers balanced gold-copper exposure (~77% gold, ~15% copper, ~8% other metals) across attractive mining jurisdictions in Canada, Greece, and Türkiye, providing jurisdictional and commodity diversification.

Significant exploration upside: Eldorado will continue to accelerate high-value organic growth opportunities. This includes advancing Foran's high-grade polymetallic Tesla zone as well as maximizing the exploration potential surrounding Eldorado's existing operating and development assets.

Compelling re-rate opportunity: With increased scale and trading liquidity, near-term growth and enhanced Canadian exposure the combination will support a valuation re-rate opportunity.

Sustainability-focused operations: Strong alignment across sustainability principles, carbon efficient practices, and a shared commitment to responsible mining will enable the combined company to focus on transparent sustainability performance and continued advancement in GHG emissions mitigation.

Leadership Commentary

eorge Burns, Chief Executive Officer of Eldorado commented "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. Increasing our exposure to Canada, through an asset in Saskatchewan, consistently recognized as one of the world's most attractive mining jurisdictions strengthens our portfolio. We're excited about the opportunity to contribute to the province's continued success. Strong cultural and sustainability alignment, together with operations in Canada, Greece, and Türkiye create a stronger, more resilient platform for decades to come."

Steven Reid, Chair of the Board of Eldorado commented "The Board of Eldorado is pleased to welcome Dan Myerson to the Eldorado Board of Directors on completion of the transaction. Together, George and Dan will provide valuable continuity, operational experience and capital markets experience to the Board and Eldorado. During 2026 the Board will embark on a process specifically to advance its board succession program."

Dan Myerson, Executive Chair and Chief Executive Officer of Foran said "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. Coupled with Skouries, this positions Eldorado to advance two world-class assets into production in short order. Having advanced through the risk curve associated with development, the company is fast approaching an inflection point towards enhanced free cash flow and production growth. I look forward to being actively involved in supporting a compelling strategy that creates an unmatched opportunity for growth and scale. We share a belief that people are the most important asset, and that disciplined execution and a relentless focus on value creation are what enable durable, generational success."

Full news

https://ca.finance.yahoo.com/news/eldorado-gold-acquire-foran-mining-120916497.html

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