VANCOUVER (miningweekly.com) – Canadian miner Eldorado Gold has agreed to extend the 90-day arbitration period by 60 days to April 6, 2018.
The Greek arbitration panel hearing a complaint by the country’s Finance, and Environment and Energy Ministries against the company's subsidiary Hellas Gold requested the extension.
The arbitration hinges on a technical study, submitted in December 2014, which Eldorado completed for the Madem Lakkos metallurgical plant for treating Olympias and Skouries concentrates in the Stratoni Valley. Greece alleges that the technical study is deficient and thereby in violation of the transfer contract and the environmental terms of the project.
Eldorado disputes this, saying it is “highly confident” that the subject technical study is robust and consistent with the transfer contract, the business plan and the approved environmental terms of the project.
Eldorado is facing headwinds regarding its elevated leverage, the execution risk in developing key projects in Greece, where government actions have delayed development, and production challenges at its main operating mine in Turkey.