Canada's Eldorado Gold to Buy Foran, Expanding Copper Holdings

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land Texas)

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Summary

Canada's Eldorado Gold has announced that it will acquire fellow Canadian miner Foran Mining in a C$3.8 billion deal intended to broaden Eldorado's exposure to copper.

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Another Mining Merger

While not as big as the pending Rio Tinto-Glencore merger, two Canadian miners are joining forces with a primary focus on copper and gold both in Canada and abroad. Eldorado Gold announced this week that it will acquire Foran Mining Corporation, a copper-focused miner. Foran shareholders will receive a certain amount of Eldorado shares depending on their holdings as well as a small cash amount per share. The deal values Foran at about C$3.8 billion (US$2.8 billion) and leaves existing Eldorado shareholders about 76% of the combined company and Foran shareholders with about 24%.

With the transaction, Eldorado acquires a significant copper holding to complement its gold production.

Foran's Flagship Copper Mine

Foran's primary copper holding is the McIlvenna Bay copper project in Saskatchewan. With construction started in 2024, the mine is expected to begin production this year, producing not only more than 30 million tons of copper per year, but also zinc, silver and gold. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.

Eldorado Projects

Eldorado's major holdings include the Lamaque gold-mining complex in Quebec, which has been producing since 2019, and the company continues to expand. Among other projects, both underway and planned, is the development of the Ormaque mine within Lamaque, which Eldorado expects to put the finishing touches this year to produce gold over a four-year mine life, employing transport and processing infrastructure already available at the complex. Subscribers can learn more by viewing the project report.

Eldorado also has a significant presence in Greece. Of particular note is its grassroot Skouries gold and copper mine and processing plant in Central Macedonia, production of which is planned to kick off this year after more than two years of turning dirt and initial plans that date back to the late 1990s. The mine's reserves of 3.8 million ounces of gold and 1.7 billion pounds of copper are intended to support a productive life of around 25 years. Subscribers can click here to learn more about the project.

The Combined Company

While copper is part of Eldorado's portfolio, its acquisition of Foran and that company's McIlvenna Bay complex will add significantly to Eldorado's copper holdings, although the company will still be gold-centric. Eldorado estimates the combined company's asset base will include roughly 77% gold and 15% copper with other metals such as zinc and silver accounting for smaller amounts.

In addition to expanding Eldorado's holdings, the combined company presents deeper funds and resources for further development. Foran's McIlvenna Bay mine is a case in point. In a joint press release from the companies regarding the merger, Foran Chief Executive Officer Dan Myerson 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."

Industrial Info is tracking the proposed addition of another shaft at the mine, reaching into new production areas and potentially extending the mine's active life. While this project is currently not set to begin for a few years, the availability of a broader pool of funds under Eldorado could hasten the McIlvenna Bay expansion, depending on how rapidly the combined company wants to grow its copper holdings. With expanded copper production being Eldorado's primary announced goal for the acquisition, proceeding with the expansion of the McIlvenna Bay mine could come sooner than originally expected.

Key Takeaways

• Canada's Eldorado Gold has announced that it will acquire fellow Canadian miner Foran Mining in a C$3.8 billion deal.
• The acquisition expands Eldorado's copper holdings.
• Foran's primary copper holding is the McIlvenna Bay copper project in Saskatchewan.
• The combined company will have about a 77% exposure to gold and 15% exposure to copper.

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  IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).
  
  About Industrial Info Resources
  Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).