The Lamaque mine Credit: Eldorado Gold
Eldorado Gold (TSX: ELD; NYSE: EGO) is buying QMX Gold Corp. (TSXV: QMX) by acquiring all the shares it doesn’t already own in the Quebec-focused explorer, in a deal worth $132 million (US$105 million).
The friendly acquisition will see Eldorado, which currently owns about 68.13 million shares of QMX or roughly 17% of the junior, paying each QMX shareholder 7.5¢ in cash and 0.02 of an Eldorado common share.
The deal represents a 39.5% premium to the closing price of QMX shares on the TSX Venture Exchange on Jan. 20.
Once the transaction is closed, QMX shareholders will own about 2.8% of the issued and outstanding common shares of Eldorado.
George Burns, Eldorado’s president and CEO, said the deal will expand the company’s footprint and landholdings in the Abitibi Greenstone Belt by about 550%.
“The transaction is consistent with our strategy of pursuing growth at Lamaque in Quebec, a high-quality jurisdiction,” Burns said in a news release. “QMX’s highly prospective land package is ideally located immediately adjacent to our current Lamaque operation and associated exploration projects in the heart of the Val d’Or gold district.”
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