Eldorado Gold to buy Foran Mining in $2.8 billion deal to deepen copper exposure

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Feb 2 (Reuters) - Eldorado Gold ELD.TO will acquire Canada's Foran Mining FOM.TO in a deal valuing the copper-focused developer at about C$3.8 billion ($2.79 billion), adding a second near-term growth project and increasing its exposure to copper.

The deal, announced by the companies on Monday, expands Eldorado's production at a time of strong gold prices and rising demand for copper, a key material used in electrification and clean energy.

The combined company's asset base will have a roughly 77% exposure in gold and 15% toward copper, with operations and development projects in Canada, Greece and Turkey.

Eldorado said it plans to step up exploration across the business, including at Foran's Tesla zone in Saskatchewan.

The enlarged miner expects to generate around $2.1  billion in core profit and $1.5  billion in free cash flow in 2027.

Under the deal, expected to close in the second quarter of 2026, Foran shareholders will get 0.1128 Eldorado shares plus $0.01 per share, giving them about 24% of the combined company.

The deal brings together Eldorado's Skouries gold-copper project in Greece and Foran's McIlvenna Bay copper project in Saskatchewan, both expected to reach commercial production in mid-2026. Eldorado said the combined group could produce about 900,000 gold-equivalent ounces in 2027.

"This transaction gives McIlvenna Bay the scale and financial strength to fully realize its potential, including the ability to accelerate phased expansion opportunities over time," said Foran CEO Dan Myerson.

The merger deal has unanimous board approvals on both sides and support agreements from senior executives, with shareholder votes scheduled by April 14, the companies said.

The combined company will remain headquartered in Vancouver under the Eldorado Gold name, while McIlvenna Bay would become a core Canadian asset alongside its Lamaque mine in Quebec.

($1 = 1.3633 Canadian dollars)

(Reporting by Sumit Saha in Bengaluru; Editing by Mrigank Dhaniwala and Shailesh Kuber)

((Sumit.Saha@thomsonreuters.com;))