Eldorado Gold and Foran Mining TSE: FOM outlined plans to combine in an all-share transaction that executives said will create a larger, more geographically diversified gold and copper producer with two major projects expected to enter production in 2026.
Deal terms and timeline
On the call, Eldorado Gold CEO George Burns said the transaction is intended to build “a stronger, more competitive gold and copper producer” with “industry-leading growth” and long-life assets. Under the terms described on the presentation’s “key terms” slide, Eldorado will acquire all outstanding Foran shares via a plan of arrangement.
Foran shareholders are set to receive 0.1128 Eldorado shares per Foran share, implying an equity value of approximately CAD 3.8 billion. Post-transaction ownership is expected to be about 76% for Eldorado shareholders and 24% for Foran shareholders.
Management said Foran’s directors and officers have entered voting support agreements in favor of the deal. Shareholder meetings are expected on or around April 14, 2026, with closing targeted for Q2 2026.
Two projects headed for 2026 production
A central theme of the call was that the combined company will have two fully financed projects expected to enter production in 2026: Skouries in Greece and McIlvenna Bay in Saskatchewan.
For Skouries, Foran Executive Chairman and CEO Dan Myerson cited figures presented on the call indicating expected annual production of 140,000 ounces of gold and 67 million pounds of copper over a 20-year mine life.
For McIlvenna Bay, Myerson said the project was about 85% complete at the end of 2025, “on budget and on schedule” for production in 2026. In the Q&A, he added the project was already in wet commissioning and targeting commercial production by the middle of 2026. He said Foran had built a stockpile of more than 200,000 tons of ore for hot commissioning and noted that the mine had “fired at least five stopes.”
Production growth, cash flow expectations, and portfolio mix
Eldorado President Christian Milau said the combined assets are expected to “transform” Eldorado’s production profile, citing consensus estimates that imply nearly $1.5 billion of free cash flow in 2027 and more than $2 billion of EBITDA in 2027 at consensus pricing, with “even greater upside” at spot prices.
Milau also said Eldorado is forecasting production to increase by 80% to more than 900,000 gold equivalent ounces in 2027. He characterized the addition of McIlvenna Bay as diversifying Eldorado in two key ways: increasing copper exposure and adding a second operating footprint in Canada. He said copper is expected to account for roughly 15% of revenue in 2027.
Responding to an analyst question about acquiring what has been viewed as a base metals company, Burns said the metal suite at McIlvenna Bay—gold, copper, lead, zinc, and silver—“is already being produced” within Eldorado’s existing portfolio. Burns said Eldorado will remain primarily a gold producer, describing the combined company as 77% gold production on a pro forma basis, while becoming “a pretty serious copper producer” as Skouries ramps up.
Milau also discussed liquidity and leverage on a pro forma basis, stating the combined company would have had approximately $1.5 billion of cash and equivalents at the end of the third quarter, with minimal net debt of roughly $90 million based on consensus estimates.
Risk, execution, and near-term catalysts
Executives emphasized de-risking and execution readiness. Burns said Eldorado has drilled off the first three years of Skouries’ open pit and completed test stopes to confirm geotechnical parameters, adding that the company planned to complete four test stopes this year. He said commissioning at Skouries was expected to begin at the end of the quarter.
Myerson said McIlvenna Bay’s major risks were largely addressed in three areas:
- Permitting: he said the project is fully permitted.
- Financing: he said the mine is fully financed and has “no streams or anything like that,” leaving shareholders with full exposure to the metal mix.
- Execution: he pointed to construction progress and commissioning activity.
Myerson also addressed the impact of regional wildfires, stating the site was evacuated for almost four weeks and that the company lost just under a month on schedule, but he said the disruption did not ultimately affect the production timeline.
On exploration upside, both Milau and Myerson highlighted the Tesla Zone at McIlvenna Bay as a key near-term expansion opportunity. Myerson described Tesla as a near-mine mineralized system “opened down plunge” with direct access to existing infrastructure, and management said a maiden resource for Tesla is expected later in 2026.
Milau described 2026 as “catalyst-rich,” listing milestones that include mid-2026 commercial production at Skouries and McIlvenna Bay, the Tesla Zone maiden resource later in 2026, and an Olympias expansion and Ormaque commercial production in the second half of 2026.
Approvals and jurisdictional strategy
In response to a question about regulatory approvals, Myerson said no approvals were required from Investment Canada because it is a combination of two Canadian companies. Burns added that the companies did not expect approvals in overseas jurisdictions.
Executives said the transaction increases Eldorado’s exposure to Canada while maintaining a long-term commitment to Greece and Türkiye. Burns described Türkiye as “foundational” for Eldorado, while Milau said the company likes the balance across jurisdictions and wants to maintain that diversity.
About Foran Mining TSE: FOM
Foran Mining Corp is a zinc-copper exploration and development company with projects located along the Flin Flon Greenstone Belt. Its project portfolio comprises McIlvenna Bay, Bigstone, VMS Primer, Hanson Lake Project, and others projects.
Further Reading
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