Upcoming AWS Coverage on Jagged Peak Energy Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 16, 2017 / Active Wall St. blog coverage looks at the headline from Eldorado Gold Corp. (NYSE: EGO) as the Company announced on May 15, 2017, that it has signed a definitive agreement with Integra Gold Corporation to acquire all of the latter's remaining shares which Eldorado does not own currently. Eldorado currently owns approximately 13% of Integra's shares. The transaction will enable Eldorado to expand its presence in the eastern Abitibi region in Canada. Register with us now for your free membership and blog access at:

http://www.activewallst.com/register/

One of Eldorado Gold's competitors within the Gold space, Jagged Peak Energy Inc. (NYSE: JAG), reported on May 11, 2017, its financial and operating results for Q1 ended March 31, 2017. AWS will be initiating a research report on Jagged Peak Energy in the coming days.

Today, AWS is promoting its blog coverage on EGO; touching on JAG. Get all of our free blog coverage and more by clicking on the link below:

http://www.activewallst.com/register/

Sharing his views on the acquisition, George Burns, President and CEO of Eldorado Gold said:

"The Company has been following Integra's progress at Lamaque over the last 18 months and commend their team for the accomplishments to date. From previous experience of building and operating gold mines in Canada, I am excited about Eldorado's entry into the Eastern Abitibi region of Canada. With our current balance sheet strength post the sale of our Chinese assets, this acquisition represents a use of the proceeds complementing our existing portfolio of high quality, low cost assets."

Stephen de Jong, President and CEO of Integra added:

"We view this transaction as a win-win for all stakeholders. Our supportive shareholders realize immediate value for their investment in Integra, and can maintain exposure to our world-class asset as Eldorado continues the rapid advancement of Lamaque."

Terms of the acquisition

Eldorado has offered two stock plus cash options to Integra's shareholders for each share held by them. Integra's shareholders can either choose to receive 0.24250 Eldorado's shares and C$1.21250 in cash, or 0.18188 of one Eldorado's share and C$0.30313 in cash, on a pro-rata basis. In either case, Eldorado has put a cap to the number of shares to be issued, at approximately 77 million shares and the maximum cash payable, has been capped at approximately C$129 million. The cash component is equal to 25% of the total offer price. The entire transaction is valued at approximately C$590 million and is inclusive of Integra's shares owned by Eldorado. The offer price represents a premium of 52% to Integra's closing price at the Toronto Stock Exchange on May 12, 2017, the last trading day before the deal was announced.

The Boards of Directors of both companies have already approved the deal. The deal is subject to 66?% of Integra's shareholders voting in favor of the transaction during the special shareholders meeting planned in July 2017. The transaction is expected to close in July 2017, but not later than August 30, 2017, subject to receipt of certain regulatory, court and stock exchange approvals, and other closing conditions.

The agreement also has a provision for Integra to consider a superior proposal from any third party and can terminate the agreement under certain circumstances. In such a case, Integra will have to pay a break-up fee of C$18 million. The limitation, however, is that Integra cannot solicit any alternative agreement and Eldorado will have three-day's time period to match the superior proposal.

On completion of the transaction, Eldorado's shareholders will own 90% stake and Integra's shareholders would hold 10% stake in the merged entity. Eldorado will also own 100% of the issued and outstanding common shares of Integra.

Benefits of the acquisition for Eldorado

The acquisition will enable Eldorado to gain complete access to Integra's Lamaque project located near Val-d'Or, Quebec. The Val-d'Or Gold Camp has been a hot-spot in the Canadian gold mining industry over the past few years. The Lamaque project gives Eldorado a gold mining opportunity in one of the safest jurisdictions in the world. As per a preliminary economic assessment completed in February 2017 the Lamaque project has the potential to produce over 123,000 ounces of gold annually on average, at an all-in sustaining cost of US $634 per ounce, over the next 10 years.

The acquisition will enable Eldorado to gain a new revenue stream and production facility at minimum cost. The acquisition will allow Eldorado to establish its presence in Canada and diversify its production and operations portfolio. The revenues from the acquisition will allow the company to fund its development pipeline. The transaction will also be beneficial in terms of income tax and other cost synergies.

Stock Performance

At the closing bell, on Monday, May 15, 2017, Eldorado Gold's stock dropped 7.10%, ending the trading session at $3.40. A total volume of 11.85 million shares were traded at the end of the day, which was higher than the 3-month average volume of 5.64 million shares. In the previous six months, shares of the Company have advanced 18.26%. Furthermore, since the start of the year, shares of the Company have gained 6.14%. The stock currently has a market cap of $2.44 billion and has a dividend yield of 72.94%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street