Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Eldorado to take full control of Integra Gold as its expands to Canada

Eldorado Gold output slightly below target, shares fall
In January, Eldorado gold cancelled expansion plans for its Turkish operation (pictured) and deferred a decision on developing the Tocantinzinho project in Brazil. (Image courtesy of Eldorado Gold)

Canada’s miner Eldorado Gold (TSX:ELD) (NYSE:EGO) has decided to buy the remaining shares of Integra Gold (TSX-V:ICG), as part of an ongoing effort to strengthen its position in the home country, particularly around the gold-rich Eastern Abitibi region, in Quebec.

The Vancouver-based gold producer, which already owned a 13% of Integra, said the transaction — worth about Cdn$590 million (US$433) — gives Integra shareholders the option of receiving cash or shares in Eldorado or a mix of both.

Once the deal is completed, current Eldorado and Integra investors would hold about 90% and 10% of the combined company, respectively.

"From previous experience of building and operating gold mines in Canada, I am excited about Eldorado's entry into the Eastern Abitibi region of Canada," Eldorado chief executive officer George Burns said in the statement.

Once the deal is completed, current Eldorado and Integra investors would hold about 90% and 10% of the combined company, respectively.

Eldorado has gone through major shifts in the past year, including the sale of all its Chinese assets in 2016 and a change of leadership with the appointment of one of Goldcorp's top executives as CEO.

Early this year, the company announced it had indefinitely shelved expansion plans for its Turkey-based Kışladağ mine, the European country’s largest gold operation.

To continue reading please click link http://www.mining.com/eldorado-take-full-control-integra-gold-expands-canada/