Gold producer Eldorado Gold Corp has agreed to buy the remaining shares of Integra Gold Corp, to expand its mining opportunities in the Eastern Abitibi region of Canada.

Integra shareholders have the option of receiving cash or shares in Eldorado or a mix of both. The maximum number of shares issuable by Eldorado under the arrangement will be about 77 million and the total deal value is about $590 million, inclusive of Integra shares held by Eldorado.

“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,” Eldorado Chief Executive George Burns said in a statement.

Upon completion of deal, existing Eldorado and Integra shareholders would hold about 90 per cent and 10 per cent of the combined company, respectively.

The Integra acquisition comes after Eldorado in January indefinitely shelved expansion plans for its flagship Kisladag mine in Turkey and put off a development decision on a project in Brazil, citing lower gold prices.

After 11 years of operations in China, Eldorado Gold left the country last year after selling stakes in two mines and a development project to Yintai Resources Co Ltd for US$600 million.

Vancouver-based Eldorado currently owns about 62.2 million common shares in the capital of Integra, constituting 13 per cent of the outstanding common shares of Integra on an undiluted basis.

© Thomson Reuters 2017