Eldorado closes €680m facility providing 80% of Skouries funding
Canadian mining company Eldorado Gold has closed a €680-million project financing for the Skouries project, in Greece, which is expected to cover 80% of the funding required to complete the project.
The company will provide the remaining 20% of the funding required to complete the half-built gold project.
Eldorado subsidiary Hellas contributed €31.2-million (about $34-million) from January 2022 through to the end of March 2023, on early works activities at Skouries, which will be applied as a credit towards the company’s equity commitment per the terms of the facility.
The company’s equity commitment for the project is backstopped by a €190-million letter of credit issued under its revolving credit facility.
The prefeasibility study capital cost estimate for Skouries is $845-million.
Eldorado in December approved an investment decision and full restart of construction activities at Skouries, which is part of the Kassandra Mines Complex. Production is expected in the second half of 2025.
Based on the feasibility study, the total life-of-mine is about 20 years, and it is expected to produce, on average, 140 000 oz/y of gold and 67-million pounds of copper a year. From first production, the payback period of the project is less than four years, and it is expected to generate, on average, $215-million of free cash flow a year for the first five years of operations.
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