Eldorado secures 80% of Skouries gold-copper project funding

Skouries is a high-grade gold-copper porphyry project partially constructed, which is currently on care and maintenance. (Image courtesy of Eldorado Gold.)

Canada’s Eldorado Gold (TSX: ELD)(NYSE: EGO) said on Wednesday it had secured previously announced €680 million (about $744m) financing facility for the development of its long-delayed Skouries gold-copper project in northern Greece.

The proposed mine, which has reserves of 3.7 million ounces of gold and 1.7 billion pounds of copper, was halted from 2017 to 2021 due to government delays in issuing permits and community opposition

After inking a new contract with Greece, Eldorado’s board approved in December last year the investment decision and full restart of construction at Skouries.

The funding will provide 80% of the expected future investment required to complete the half-built project. The remaining 20% of the investment needed will be fully covered by Eldorado’s existing cash and future cash flow from operations, the company said.

Once that it’s up and running Skouries is expected to have a significant impact on Eldorado’s total gold production and cash cost profile, as it will diversify the company’s business through revenue from copper. 

Part of the Kassandra Mines Complex, Skouries has an anticipated operational life of 20 years, producing an aggregate of 140,000 ounces of gold and 67 million pounds of copper annually.

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

Recently, the company’s president and chief executive officer, George Burns, sat down with our sister publication, The Northern Miner, to discuss the benefits of the Skouries project. You can watch the interview here: