VANCOUVER: Eldorado Gold Corp agrees to buy copper-focused Foran Mining Corp for C$3.8bil, the latest industry tie-up as miners seek to ramp up metals production after a massive price rally over the past year.
Eldorado, which owns a number of mines in Canada and Europe, will use a combination of equity and cash to acquire all outstanding shares of the smaller miner with no premium to Foran’s closing price last Friday, according to a statement on Monday.
After the merger, existing Eldorado holders will own about 76% of the combined company and Foran holders will own about 24%.
Shares in Eldorado closed 8.9% lower in New York while Foran Mining was down 5.2% at the Toronto close.
Miners are racing to secure more metals supply as demand surges with the electrification of the global economy, and as mineral deposits become more difficult to find and more expensive to develop. — Bloomberg
