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Eldorado secures financing and Board approval for Skouries project

Published by , Editorial Assistant
Global Mining Review,

Eldorado Gold Corporation has announced that its wholly-owned subsidiary, Hellas Gold Single Member S.A has entered into a €680 million project financing facility (for the development of the Skouries project in Northern Greece) with National Bank of Greece S.A. and Piraeus Bank S.A. as lead arrangers. Consistent with the company’s previous disclosure, the term facility will provide 80% of the expected future funding required to complete the project, which is approximately half-built. The term facility is non-recourse to Eldorado and the collateral securing the term facility covers the Skouries project and the Hellas operating assets. The remaining 20% of project funding is expected to be fully covered by Eldorado’s existing cash and future cash flow from operations. Until such further equity is fully invested, Eldorado’s investment undertaking for the project will be fully backstopped by a letter of credit from the company’s revolving credit facility. Drawdown on the term facility is subject to customary closing conditions. The company expects such conditions to be satisfied and the initial drawdown to occur in 1Q23.

The company is also announced that its Board of Directors has approved, conditional upon the initial drawdown of the term facility, the investment decision and full re-start of construction at Skouries.

Steve Reid, Chair of the Board, said:

“Skouries represents the next phase of growth at Eldorado, generating significant value for all of our stakeholders with robust project economics and providing many benefits to the local communities and economy in Greece.”

“Having had the opportunity to tour Skouries recently, Eldorado’s board and the leadership team are excited to be resuming construction and bringing this world-class asset into production. On behalf of the Board, I want to congratulate the team on this important milestone.”

George Burns, President and CEO of Eldorado Gold, commented:

“We are proud to be announcing the signing of this financing and the restart of construction at Skouries.”

“The participation of Greek lenders in the project provides aligned strategic partners as we advance Skouries towards commercial production. The term facility covers 80% of the expected remaining future funding required to complete the project. The company is able to fund the remaining 20% from its current balance sheet, future cash flow from existing operations and will receive a credit for its actual expenditures during the pre-construction phase in 2022, all of which fully addresses the project funding requirement.”

“Our focus now shifts to project execution, with first production expected in the 2H25, followed by a ramp-up as we optimise facilities,” continued Burns.

“Once in production, Skouries will have a significant impact on Eldorado’s total gold production and cash cost profile and will diversify our business through revenue from copper. On behalf of the Eldorado and Hellas teams, I want to thank our local partners and workforce, the Aristotle Municipality, the Greek government, and National Bank of Greece and Piraeus Bank, for their support of the project. We look forward to working with them and developing a world-class mine in the region adhering to best-in-class sustainability standards.”

Read the article online at: https://www.globalminingreview.com/mining/20122022/eldorado-secures-financing-and-board-approval-for-skouries-project/

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