Eldorado and QMX Announce Friendly Acquisition of QMX by Eldorado
VANCOUVER, British Columbia, Jan. 21, 2021 (GLOBE NEWSWIRE) -- ELDORADO GOLD CORPORATION (TSX: ELD; NYSE: EGO) (“Eldorado”) and QMX GOLD CORPORATION (TSX-V: QMX) (“QMX”) are pleased to announce
that they have entered into a definitive arrangement agreement (the “Agreement”) pursuant to which Eldorado will acquire all of the outstanding shares of QMX (not already owned by Eldorado) for
total consideration of approximately C$132 million on a 100% and fully diluted basis or C$0.30 per QMX share (the “Arrangement”). Eldorado currently owns 68,125,000 shares of QMX, or
approximately 17% of QMX shares outstanding, which it purchased at C$0.06 per share in a private placement on December 30, 2019.
Under the terms of the Arrangement, each holder of QMX shares will receive, for each QMX share held, (i) C$0.075 in cash and (ii) 0.01523 of an Eldorado common share (the “Arrangement Consideration”), for total consideration of C$0.30 per QMX share (based on Eldorado’s closing price on January 20, 2021). The Arrangement Consideration represents a 39.5% premium to the closing price of QMX shares on the TSX Venture Exchange (the “TSX-V”) on January 20, 2021.
Following the completion of the Arrangement, QMX shareholders will own approximately 2.8% of the issued and outstanding shares of Eldorado.
Benefits to QMX Shareholders
- Attractive premium of 39.5% to the closing price of the QMX shares on the TSX-V on January 20, 2021.
- Ongoing exposure to QMX’s land package and subsequent value creation opportunities through a broader consolidated operating camp in the Eastern Abitibi.
- Exposure to Eldorado’s portfolio of high-quality mines and development projects.
- Access to Eldorado’s technical, project development and operating capabilities, as well as financial resources.
- Potential for value accretion through a re-valuation in Eldorado’s share price as Eldorado continues to deliver and de-risk its combined asset
Brad Humphrey, President and CEO of QMX, commented: “In 2016, we set to re-focus QMX into a premier exploration company to maximize the value of our Val d’Or property. I am proud to say that this transaction is a testament to all the hard work and effort that the QMX team has put in over the years, and in particular, a testament to the success and strength of the QMX exploration team in Val d’Or. In addition, QMX could not have achieved its success to date without a number of supportive stakeholders.”