Eldorado Gold Corp (USA)(NYSE:EGO) To Buy Integra Gold Corporation


Eldorado Gold Corp (USA)(NYSE:EGO) has finalized a definitive deal with Integra Gold Corp., pursuant to which the former firm has agreed to buy all of the issued and unpaid stock of Integra that it does not own, by means of a plan of arrangement under the Business Corporations Act.

The update

Under the deal, shareholders of Integra will be eligible to receive, at their decision, for each Integra share they hold either (i) 0.24250 EGO shares, (ii) cash consideration of C$1.21250, in both (i) and (ii) depending on pro ration, or (iii) C$0.30313 in cash and 0.18188 of an Eldorado share. The maximum number of stock issuable by Eldorado under this deal will be almost 77 million depending on the count of Integra shares due less Integra shares presently owned by Eldorado.

The maximum amount of funds payable by Eldorado under the deal will be almost C$129 million equal to one-fourth of the total consideration. This brings the total transaction value at around C$590 million, including Integra shares owned by Eldorado.

The company’s offer represents a value of C$1.21250 for each Integra stock grounded on the closing price of EGO on May 12, 2017 on the TSE

A premium of almost 52% to Integra’s May 12 closing price and also a premium of 46% depending on the VWAP of both firms on the TSE for the 20-day period closing May 12, 2017. Upon closure of the deal and depending on the maximum count of shares issuable under the proposed Arrangement, current Integra and Eldorado shareholders would hold around 10% and 90% of the combined firm, respectively.

George Burns, the President and CEO of Eldorado Gold, said that the firm has been following Integra’s growth at Lamaque over the preceding 18 months and appreciate their team for the achievements to date. From last experience of operating and building gold mines in Canada, he is thrilled about Eldorado’s venture into the Eastern Abitibi area of Canada.

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