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

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

Canada’s 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 gold producer, which , 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 .

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 in 2016 and a with the appointment of one of Goldcorp’s top executives as CEO.

Early this year, the company announced it had for its Turkey-based Kışladağ mine, the European country’s 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’Or, 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.