Eldorado Gold Corp.’s subsidiary, Hellas Gold Single Member S.A., has entered a €680 million ($722 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. The term facility will provide 80% of the expected future funding required to complete the project, which is about half-built. Eldorado will cover the remaining 20% with existing cash and future cash flow from operations.
Eldorado’s board has approved a full re-start of construction at Skouries. “The participation of Greek lenders in the project provides aligned strategic partners as we advance Skouries towards commercial production,” said George Burns, president and CEO of Eldorado Gold. “Our focus now shifts to project execution, with first production expected in the second half of 2025, followed by a ramp-up as we optimize facilities. 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.”
Skouries 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. The operation is expected to produce, on average, 140,000 ounces of gold and 67 million pounds of copper annually over its initial 20-year mine life.
Eldorado said it remains confident in the capital cost estimate of $845 million to bring the Skouries project into commercial production. Most of the major processing equipment has been purchased and installed or sits in storage.
In 2022, project activity was focused on steel erection and enclosure of the processing facilities, which is now largely complete, as well as execution readiness and critical path activities. In 2023, project activities will focus on finalizing detailed engineering, which is 42% complete and forecasted to be 70-75% complete for full construction mobilization in the second half of 2023, the release of remaining procurement packages, and community engagement. Additionally, Eldorado has built a highly capable owners’ team that is based at Skouries, and the Engineering, Procurement and Construction Management contractor has been progressively mobilizing.
