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Mining News January 22, 2021 05:00:29 PM

Eldorado Gold Invests $105 Million on New Acquisition

Paul Ploumis
ScrapMonster Author
The purchase transaction will significantly increase Eldorado’s footprints in the Abitibi Greenstone Belt.

Eldorado Gold Invests $105 Million on New Acquisition

SEATTLE (Scrap Monster): Canadian miner Eldorado Gold and QMX Gold Corporation have entered into a definitive agreement, by which Eldorado will purchase all of the outstanding shares of QMX, which are not already owned by it, for a total consideration of $105 million. The completion of the transaction is subject to regulatory approvals and certain customary closing conditions.

It must be noted that Eldorado currently owns nearly 17% of the QMX shares. As per deal, Eldorado will pay each QMX shareholder C$0.075 in cash and 0.01523 of an Eldorado common share. Upon closing of the transaction, QMX shareholders will own nearly 2.8% of the issued and outstanding Eldorado shares.

ALSO READ: Eldorado Gold Posted 34% Surge in 2020 Gold Output

The purchase transaction will significantly increase Eldorado’s footprints in the Abitibi Greenstone Belt, in line with its strategy to boost investments in world-class mining jurisdictions. In addition to adding a pipeline of additional organic opportunities proximal to Lamaque, it will also enhance the company’s overall risk profile. Most importantly, the deal underscores Eldorado’s long-term mining commitment to Quebec region and Canada.

George Burns, President and CEO, Eldorado noted that QMX’s land package is ideally located adjacent to its current Lamaque operation and associated exploration projects.

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