Greek Gold announced today the securing of financing of 680 million euros and the taking of the investment decision by the parent company Eldorado Gold
The way is opened for the exploitation of the gold and copper deposit on Rusts Halkidiki as the Greek Gold announced today the securing of financing of 680 million euros and the taking of the investment decision by the parent Eldorado Gold.
Based on the Feasibility Study, the total mine life is approximately 20 years and is projected to have an average annual production of 140,000 ounces of gold and 67 million pounds of copper. According to what was announced today, production is expected to start in the second half of 2025. The restart of the Skourion project and its inclusion in the production phase is included in the new investment plan of the company that has been agreed, totaling 3.1 billion euros .
According to Hellinikons Chrysos, it is about world class deposit the development of which is “expected to create over 25 years about 1,400 stable and well-paid jobs in the area and about 800 additional ones during the construction project”.
Overall, the company adds, the full development of the Kassandra Mines will create 5,000 direct and indirect jobs, while it will contribute tax revenues of more than 2 billion dollars for the Greek State from taxes and contributions and more than 4 billion dollars in estimated value of purchases to Greek suppliers. Over the lifetime of Kassandra Mines, $80 million will be invested in corporate responsibility programs to develop programs and implement development projects that will exclusively benefit the local economy. At the same time, a model Technical Training Center will be created for the training and development of employees.
The long-term syndicated loan was agreed with National Bank and Piraeus Bank. The amount of 680 million also includes a Loan from the Recovery & Resilience Fund of 100 million euros. The remainder of the financing for the completion of Skouria development will be covered by Eldorado Gold.
“Skouries represents the next phase of Eldorado’s development, generating significant value for all our stakeholders with robust project financials, while providing multiple benefits to local communities and the Greek economy,” said Steve Reid, Eldorado’s Chairman of the Board Gold.
George Burns, President and CEO of Eldorado Gold, said: “The participation of the Greek Banks in the financing of the Project, ensures alignment between our strategic partners moving towards the start of commercial production at Skouries. Our focus now shifts to project execution, where production is expected to start for the first time in the second half of 2025 and increase further thereafter as we optimize the Skouries facilities.”
“Once commercial production begins, Skouries will have a significant impact on Eldorado’s overall gold production and cash profile and will diversify our business through copper revenues. On behalf of the Eldorado and Hellinikons Chrysos teams, I would like to thank our employees and local partners, the Municipality of Aristotelis, the Hellenic Government as well as National Bank and Piraeus Bank for their support of the Project and we look forward to continuing the our partnership and to develop a world-class mine in the region, adhering to world-leading environmental standards and ESG criteria,” continued Burns.
In the same context, Eldorado Gold’s Vice-President of Greece and President of Hellinikons Chrysos Christos Balaskas emphasized: “Today we took two very big steps that allow us to move decisively towards our final goal, which is the full start of Skouria’s production operation. I want to thank the Board of Directors of Eldorado Gold for approving the investment decision, as well as all the employees of Hellinikons Chrysos for their contribution to this effort” and then added “we have an important journey ahead of us and we will continue with the same dynamics both for the development of Skouria and for the strengthening of the competitiveness of our mine in Olympiada, in order to make Greece the 3rd largest producer of gold in Europe, contributing in this way decisively to the change of the profile of the Greek economy”.
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