Eldorado Gold Corp. [ELD-TSX; RGO-NYSE] has acquired all of the outstanding common shares in the capital of QMX Gold Corp. not already owned by Eldorado. The arrangement became effective at 12:01 a.m. Eastern Time on April 7, 2021, resulting in QMX becoming a wholly owned subsidiary of Eldorado.
“We are very pleased to complete the acquisition of QMX, which significantly increases Eldorado’s position in the Abitibi greenstone belt and is consistent with our strategy to invest in world-class mining jurisdictions. Eldorado is a committed partner for mining in Quebec, with exploration and operational success across our Lamaque operations. The addition of QMX to our portfolio opens a range of opportunities to expand our activities in the region and to leverage our existing infrastructure and Eldorado’s strong operational, exploration and stakeholder expertise,” said George Burns, Eldorado’s president and CEO.
Under the terms of the arrangement, each holder of QMX shares is entitled to receive, for each QMX share held immediately prior to the effective time 7.5 cents in cash; and 0.01523 of a common share in the capital of Eldorado, for total consideration of 30 cents per QMX share (based on the closing price of the Eldorado shares on Jan. 20, 2021).
With QMX now a wholly owned subsidiary of the company, Eldorado intends to delist the QMX shares from the TSX Venture Exchange as soon as practicable. Prior to the completion of the arrangement, Eldorado owned, directly or indirectly, or exercised control or direction over, 68,125,000 QMX shares, representing approximately 15.55% of the issued and outstanding QMX shares prior to the completion of the arrangement.
Full details of the arrangement are set out in the arrangement agreement dated Jan. 20, 2021, between Eldorado and QMX, which has been filed by QMX under its profile on SEDAR.
Eldorado is a gold and base metal producer with mining, development and exploration operations in Turkey, Canada, Greece, Romania and Brazil.
QMX is a Canadian-based resource company that has been systematically exploring its extensive property position in the Val d’Or mining camp, Quebec. QMX is currently drilling in the Val d’Or East portion of its land package focused on the Bonnefond deposit and in the Bourlamaque batholith. In addition to its extensive land package, QMX owns the strategically located Aurbel gold mill and tailings facility.