Press Release: Eldorado Gold Signs Amended Investment Agreement with the Hellenic Republic
Eldorado Gold Signs Amended Investment Agreement with the Hellenic Republic
VANCOUVER, British Columbia, Feb. 05, 2021 (GLOBE NEWSWIRE) -- Eldorado Gold Corporation ("Eldorado" or "the Company") is pleased to announce its wholly-owned subsidiary, Hellas Gold S.A. has entered into an amended Investment Agreement (the "Agreement") with the Hellenic Republic to govern the further development, construction and operation of the Skouries, Olympias and Stratoni/Mavres Petres mines and facilities in northern Greece (collectively the "Kassandra Mines"). The Agreement amends the 2004 Transfer Agreement between Hellas Gold S.A. and the Hellenic Republic, and provides a modernised legal and financial framework to allow for the advancement of Eldorado's investment in the Kassandra Mines.
The Agreement is mutually beneficial to Eldorado and the Hellenic Republic. For Eldorado, it provides investor protection mechanisms including a permitting framework similar to other large-scale foreign investment agreements in Greece. For the Hellenic Republic, it provides enhanced fiscal revenues, environmental benefits, and community development opportunities.
The Agreement includes an optimized Investment Plan for the Kassandra Mines which will allow for:
The Agreement will be formally submitted to the Greek Parliament for ratification, with a vote expected to take place in an upcoming parliamentary session. The Agreement takes effect once published in the Greek Government Gazette, which follows parliamentary ratification.
"Today is a major milestone, marking a new beginning for the Kassandra Mines and for Eldorado Gold in Greece," said George Burns, President and CEO. "This agreement is the culmination of dedicated, determined efforts and reflects a true desire from both parties to deliver a commercial framework that can realize the potential of the Kassandra Mines for all stakeholders. Both Olympias and Skouries have the potential to be tier-one assets that, when combined with the rest of our portfolio, will be transformational for Eldorado.
"We now have a modernized investment agreement that will provide a stable, commercial path for Eldorado in Greece, as well as a strong precedent for future investment in the country once ratified by the Greek Parliament. Together, we are building a positive legacy for generations to come as we continue to commit to operating responsibly and with care for local communities and the environment."
Key Benefits of the Agreement
Next Steps at Skouries
The Company is advancing several key pieces of technical work on the Skouries project, including additional engineering and feasibility-level updates to the capital cost estimate. An application for dry-stack tailings was submitted to the Ministry of Energy & Environment in late 2020 with approval expected once the Ministry has completed its review. The Company is continuing to evaluate financing options for Skouries. Once re-started, the Company expects to complete construction in approximately 2.5 years.
About Skouries Project
Skouries is a high-grade gold-copper porphyry project that is partially constructed and currently in care and maintenance. Skouries is expected to operate for approximately 23 years based on current reserves, initially as an open pit and underground mine, followed by underground mining only.
Highlights of the project as outlined in the Technical Report for Skouries dated January 1, 2018 include:
A copy of the Skouries Technical report can be found here, or on SEDAR.
To take a virtual tour of the Skouries site, please visit: https://vrify.com/explore/projects/45/sites/3147
About Olympias Mine
Olympias is a gold-silver-lead-zinc mine that Eldorado refurbished and put back into production at the end of 2017. Olympias produced over 58,000 ounces of gold in 2020. The Company's current guidance shows production increasing to between 65,000 and 70,000 ounces of gold a year in 2023. Olympias has a mine life of 21 years based on current reserves and outlined in the most-recent Technical Report (dated December 31, 2017).
A copy of the Olympias Technical report can be found here, or on SEDAR.
To take a virtual tour of the Olympias site, please visit: https://vrify.com/explore/projects/75/sites/3145
About Eldorado Gold
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece, Romania, and Brazil. The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
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Cautionary Note About Forward-Looking Statements and Information
Certain of the statements made and information provided in this press release are forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, these forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "continue", "projected", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements or information contained in this release include, but are not limited to, statements or information with respect to: the formal ratification of the Agreement by Greek Parliament and effectiveness of the Agreement, the benefits of the Agreement, the completion of construction at Skouries, including transition into production, the advancement of technical work at Skouries, including the approval of dry-stack tailings, financing and completion of construction, and the timing thereof, and expected reserves, mine life, production, costs, NPV and design at Skouries, the expansion at Olympias, the upgrade of port facilities at Stratoni, further exploration at Mavres Petres-Stratoni, the continued study of processing methods, and our expectations regarding the timing and quantity annual gold production; our expectation as to our future financial and operating performance, including expectations around generating free cash flow; working capital requirements; debt repayment obligations; use of proceeds from financing activities; expected metallurgical recoveries and improved concentrate grade and quality; gold price outlook and the global concentrate market; risk factors affecting our business; our strategy, plans and goals, including our proposed exploration, development, construction, permitting and operating plans and priorities and related timelines; and schedules and results of litigation and arbitration proceedings. Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
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February 05, 2021 08:36 ET (13:36 GMT)