Canada’s miner Eldorado Gold (TSX:ELD) (NYSE:EGO) has taken over Integra Gold (TSX-V:ICG) in a move that helps it strengthen its position in the home country, particularly around the gold-rich Eastern Abitibi region, in Quebec.
The deal, worth about Cdn$590 million (US$457 at today’s rates), was approved by Integra shareholders and the Supreme Court of British Columbia last week.
The transaction gives Integra shareholders about Cdn$129 million cash and 77 million common shares of Eldorado, for all the issued common shares of Integra that the company did not already own. That represents roughly 10% of the total issued common shares of Eldorado, post-completion of the arrangement, the company said in the statement.
Integra will now be a wholly-owned subsidiary of Eldorado and its shares will be delisted from the TSX-V, the firm noted.The acquisition comes after Eldorado said last month it was likely to miss its 2017 guidance by as much as 25% due to leaching problems at its Kışladağ mine in Turkey, one of its largest operations.
It also follows fresh troubles at its operations in Greece, where the government has said it would take the miner to an arbitration court to settle ongoing differences over contracts.
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