Canadian firm Eldorado Gold Corporation announces that it has entered into a mandate letter with Greek banks for a credit committee approved €680 million project finance facility for the development of the Skouries Project in Northern Greece.
“The Mandate Letter represents an important step towards the re-start of construction at Skouries,” said George Burns, President and CEO of Eldorado. “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 US$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. We also continue to evaluate opportunities for complementary sources of financing. A final decision to re-start construction remains subject to Board approval, which we expect to seek in the second half of 2022.”
The Mandate Letter includes a long-form term sheet, which contains customary terms and conditions, including with respect to due diligence, and remains subject to negotiation of definitive binding loan documentation and to other approvals and conditions, including board approval and confirmation of the availability of funds for a low-interest portion of the facility.
The Skouries project, part of the Kassandra Mines Complex, is located within the Halkidiki Peninsula of Northern Greece. It is a gold-copper porphyry deposit to be mined using a combination of conventional open pit and underground mining techniques. Based on the Feasibility Study, the total life of mine is approximately 20 years, and is expected to produce, on average 140,000 ounces of gold and 67 million pounds of copper per year. From first production, the payback period of the project is less than four years, and is expected to generate, on average, $215 million of free cash flow per year for the first five years of operations.
Photo: Παρατηρητήριο Μεταλλευτικών Δραστηριοτήτων/commons.wikimedia.org.