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Eldorado Gold To Acquire QMX Gold For About C$132 Mln

Eldorado Gold Corp. (EGO,ELD.TO) agreed to acquire all of the outstanding shares of QMX Gold Corp. (QMX.V) --not already owned by Eldorado-- for total consideration of about C$132 million or C$0.30 per QMX share.

Eldorado currently owns 68.13 million shares of QMX or about 17% of QMX shares outstanding, which it purchased at C$0.06 per share in a private placement on December 30, 2019.

As per the terms of the Arrangement, each holder of QMX shares will receive, for each QMX share held, C$0.075 in cash and 0.01523 of an Eldorado common share, for total consideration of C$0.30 per QMX share. The deal price represents a 39.5% premium to the closing price of QMX shares on the TSX Venture Exchange on January 20, 2021.

Upon the completion of the arrangement, QMX shareholders will own approximately 2.8% of the issued and outstanding shares of Eldorado.

The agreement provides for non-solicitation covenants, with "fiduciary out" provisions that allow QMX to consider and accept a superior proposal, subject to a "right to match period" in favour of Eldorado.

The agreement also provides for a termination fee of C$6.6 million to be paid by QMX to Eldorado if the Agreement is terminated in certain specified circumstances.

The companies said that they are working towards closing the transaction in late March / early April 2021.

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