Eldorado Gold to buy Integra, gain Quebec gold project in friendly takeover

Eldorado Gold to buy Integra, gain Quebec gold project in friendly takeover

VANCOUVER — Eldorado Gold Corp. (TSX:ELD) is preparing to acquire a gold mining development in Quebec through a friendly takeover of Integra Gold Corp., which is valued at about $590 million.

The Vancouver-based company already owns about 13 per cent of Integra’s common stock (TSXV:ICG) and plans to acquire the rest through an offer that’s 52 per cent above Integra’s share price at the close of trading on Friday.

Integra shareholders are being offered a combination of cash and Eldorado stock valued at a total of about $1.21 based on Friday’s closing price for Eldorado shares.

Integra’s Friday closing price was 80 cents per share (TSXV:ICG) on the TSX Venture Exchange and Eldorado’s stock closed at $5 on the Toronto Stock Exchange.

Eldorado has capped the amount of cash it will pay under the Integra deal at $129 million, equal to one-quarter of the full amount, and capped the amount of Eldorado shares it will exchange at 77 million.

Integra’s shareholders would own about 10 per cent of Eldorado’s stock after the transaction.

Integra’s main asset is the Lamaque project near Val-d’Or, Que. A preliminary economic assessment completed in February estimates it has potential to produce 123,000 ounces of gold annually on average over 10 years.

The Canadian Press

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