Eldorado Gold Secures Funding to Develop Mine in Greece

The project is expected to cost $845 million for development. Credit: AMNA

Eldorado Gold Corporation and its wholly-owned subsidiary Hellas Gold announced on Wednesday that they have completed the 680 million euro ($742 million) financing for developing the Skouries project in Northern Greece.

The funding agreement is structured to provide 80% of the funding required to complete the project, with the remaining 20% to be funded by Eldorado Gold.

Hellas contributed 31.2 million euros (approximately 34.0 million US dollars) from January 2022 through the end of March 2023 on early works activities at Skouries, which will be applied as a credit towards Eldorado’s equity commitment, according to the terms of the funding agreement.

According to the feasibility study, the project is expected to cost $845 million for development.

Eldorado President and CEO George Burns recently said: “We believe that Skouries is a world-class project that will have a lasting positive economic and social impact for Greece, the communities we work in, and other stakeholders.”

“We remain confident in the feasibility study capital cost estimate of $845 million, and with the project finance facility in place, the company has the balance sheet capacity to fund the remaining capital cost for completion of the project,” he reported.

With an anticipated operational life of twenty years, the project is expected to produce an aggregate of 140,000 ounces of gold and 67 million pounds of copper per annum.

The deposit is planned to be mined using a combination of conventional open pit and underground mining techniques, Eldorado said.

Eldorado Gold investment was controversial in Greece

The Canadian mining company has been operating in Greece since 2012. The company’s main focus is on the Skouries project, located in the Halkidiki region of Greece. The Skouries project is a gold and copper mine that Eldorado Gold Corporation hopes will become one of its largest and most profitable operations.

However, the Skouries project has faced significant opposition from local communities, environmental groups, and the previous leftist Greek government.

Critics of the project argue that it poses a significant threat to the environment and tourism industry in the Halkidiki region. They also argue that the project does not bring significant economic benefits to the local community.

In 2015, the Greek government suspended the company’s mining permit for the Skouries project, citing concerns over environmental impact. Moreover, in 2017, the company announced that it would suspend its operations in Greece, including the Skouries project, due to opposition from the previous government and local communities.

This controversy highlights the complex challenges mining companies face when operating in foreign countries.

On one hand, mining projects can bring significant economic benefits to local communities, such as job creation and increased tax revenues.

On the other hand, they can also have negative environmental and social impacts, which can lead to significant opposition from local communities and governments.