Eldorado Gold Corp. has agreed to acquire Foran Mining Corp. in a transaction valuing Foran at $3.8 billion. Under the agreement, Foran shareholders will receive 0.1128 of an Eldorado share plus one cent in cash for each Foran share held. Eldorado shares closed at $58.42 on the Toronto Stock Exchange on Friday, while Foran shares ended the week at $6.59. On completion of the transaction, Eldorado shareholders will own about 76 per cent of the combined company and Foran shareholders approximately 24 per cent.

BMO Capital Markets is acting as financial advisor to Eldorado, while RBC Capital Markets provided an independent fairness opinion to the Eldorado special committee. Blake, Cassels & Graydon LLP is acting as legal advisor to Eldorado and Fasken Martineau DuMoulin LLP is acting as legal advisor to the Eldorado special committee.

Morgan Stanley Canada Limited, National Bank Capital Markets and Mills Dunlop Capital Partners are acting as financial advisors to Foran. Stifel Nicolaus Canada Inc. provided an independent fairness opinion and is acting as financial advisor to the Foran special committee. McCarthy Tétrault LLP is acting as legal advisor to Foran.

The deal remains subject to approval by Foran shareholders, regulatory approvals and other customary closing conditions.