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Update: Eldorado Gold up 9% Early Friday on TSX as Signs Amended Investment Agreement With Greece

· 02/05/2021 04:50

09:40 AM EST, 02/05/2021 (MT Newswires) -- Eldorado Gold Corporation (ELD.TO) was at last look up near 9% on the TSX early Friday after saying its subsidiary, Hellas Gold S.A. has entered into an amended Investment Agreement with Greece 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 company said.

The Agreement includes an optimized Investment Plan for the Kassandra Mines which will allow for:

Completion of construction at Skouries and transition of the project into production;

Expansion of Olympias to 650,000 tonnes per annum;

Upgrades to the port facilities at Stratoni to allow for bulk shipment of concentrates;

Further investment in exploration at Mavres Petres-Stratoni; and

Continued study of on-site gold processing methods.

The Agreement will be formally submitted to the Greek Parliament for ratification, with a vote expected to take place in an upcoming parliamentary session.

"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."

Price: 16.14, Change: +1.39, Percent Change: +9.42