Canada鈥檚 miner Eldorado Gold (TSX:ELD) (NYSE:EGO) has decided to (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聽gold producer, which , said the transaction 鈥� worth about Cdn$590 million (US$433) 鈥� gives聽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.
鈥淔rom previous experience of building and operating gold mines in Canada, I am excited about Eldorado鈥檚 entry into the Eastern Abitibi region of Canada,鈥� Eldorado chief executive officer George Burns said .
Once the deal is completed, current Eldorado and Integra investors would hold about 90% and 10% of the combined company, respectively.
Investors reacted negatively to the news, which pushed the stock down 8% to Cdn$4.60 in Toronto, while shares were down 8.21% lower to $3.36 in New York at 11:30 am ET.
Eldorado has gone through major shifts in the past year, including the聽 in 2016 and a聽聽with the appointment of one of Goldcorp鈥檚 top executives as CEO.
Early this year, the company announced it had for its Turkey-based K谋艧lada臒 mine, the European country鈥檚 largest gold operation.
It also deferred a decision on developing a project in Brazil, citing low gold prices.
The acquisition of Integra gives Eldorado full ownership of the Lamaque project near Val-d鈥橭r, Quebec, which is expected to become an underground gold mine with an annual output of 123,000 ounces of the precious metal at all-in sustaining costs of US$634 per ounce over 10 year.