Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Eldorado Gold (TSX: ELD; NYSE: EGO) completed the acquisition of QMX Gold Corporation (TSX-V: QMX), resulting in the Canada-based resource company becoming a wholly-owned subsidiary of Eldorado.
Eldorado announced the acquisition in January, in a deal worth C$132 million (about $105m).
“We are very pleased to complete the acquisition of QMX, which significantly increases Eldorado’s position in the Abitibi Greenstone Belt and is consistent with our strategy to invest in world-class mining jurisdictions,” George Burns, Eldorado’s president and CEO said in media release.
The Vancouver-based gold major also noted that the acquisition of QMX adds a pipeline of opportunities close to its Lamaque gold mine, which can be exploited by leveraging existing infrastructure.
QMX is currently drilling in the Val d’Or East portion of its land package focused on the Bonnefond Deposit and in the Bourlamaque Batholith.
With the acquisition, Eldorado intends to de-list the QMX shares from the TSX Venture Exchange.
Midday Tuesday, Eldorado Gold’s stock was up 2% on the NYSE. The company has a $2 billion market capitalization.
