Canada’s Eldorado Gold on Friday signed an amended investment agreement with the Hellenic Republic to govern the development, construction and operation of its mines and projects in Greece.
Hailed as a “new beginning” for Eldorado and its Kassandra Mines in Greece, the agreement will pave the way for the completion of the Skouries project, the expansion of Olympias to 650 000 t/y, upgrades to the port facilities at Stratoni and further investment in exploration.
The Skouries project has struggled with permit delays for years. Last year, Eldorado threatened to pull all investment from its operations in Greece, citing the permit delays and a fractured relationship with the government.
The miner said the revised agreement provided investor protection, including a permitting framework like other large-scale foreign investment agreements in Greece.
“This agreement is the culmination of dedicated, determined efforts and reflects a true desire from both parties to deliver a commercial framework that can realise the potential of the Kassandra Mines for all stakeholders. Both Olympias and Skouries have the potential to be tier-one assets that, when combined with the rest of our portfolio, will be transformational for Eldorado,” said president and CEO George Burns.
The agreement would be formally submitted to the Greek Parliament for ratification, with a vote expected to take place in an upcoming Parliamentary session.
Eldorado opened 10% higher on the NYSE on Friday, trading at $12.70 a share.