Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
Canada’s miner Eldorado Gold (TSX:ELD) (NYSE:EGO) has decided to buy the remaining shares of Integra Gold (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 already owned a 13% of Integra, 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 in the statement.
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 sale of all its Chinese assets in 2016 and a change of leadership with the appointment of one of Goldcorp’s top executives as CEO.
Early this year, the company announced it had indefinitely shelved expansion plans 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.
