Eldorado Gold has signed a mandate with the Bank of Greece for the approval of a €680 million project finance loan from the Credit Committee for the development of the Skouries project in Greece. The Power of Attorney includes a long term term sheet with customary terms and conditions and negotiated final loan documents. It is also subject to other conditions, including board approval and confirmation of the availability of funds for the low-interest portion of the loan.

The Canadian gold miner said that based on a feasibility study, project development could require an estimated capital cost of $845 million. With the project financing mechanism in place, the company said it is well positioned to fund the remaining capital cost of completing the project.

"We believe Skouries is a world-class project that will have a lasting positive economic and social impact on Greece, the communities in which we work and other stakeholders," said George Burns, President and CEO of Eldorado. We remain confident in our feasibility study capital cost estimate of $845 million and the company's ability to fund the remaining capital cost of completing the project, with project financing mechanisms in place. We will also continue to evaluate opportunities for additional funding sources. A final decision on reopening remains subject to Board approval, which we expect to seek in the second half of 2022.

The Skouries project was acquired from European Gold Mines in 2012 and is part of the Kassandra Mines Complex located within the Chalkidiki Peninsula in northern Greece. This is a gold-copper porphyry deposit that is planned to be mined using a combination of traditional open pit and underground mining techniques. With first production, the project is expected to pay for itself in less than four years and generate an average free cash flow of $215 million per year in the first five years.Editor/XingWentao