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Eldorado Gold (TSX: ELD) has closed the recently announced strategic investment of C$81.5 million ($61.1m) by the European Bank for Reconstruction and Development (EBRD). The investment was effected by way of a private placement, whereby EBRD subscribed for approximately 6.27 million shares at a price of C$13.00 per share.
The proceeds will be used to fund the development of Eldorado’s Skouries project in northern Greece, and will be credited against the company’s 20% equity funding commitment per the terms of the €680 million financing facility that closed on April 5.
Eldorado now has 100% of the funding required to complete the Skouries project, which is expected to produce a total of 140,000 oz of gold and 67 million lb of copper per year over a 20-year mine life. First production expected in the second half of 2025.
“The EBRD’s equity investment, coupled with the Greek lenders in our recently closed project finance facility, provides strategic partners as we advance Skouries towards commercial production,” Eldorado CEO George Burns said in a news release.
“Proceeds from this financing will strengthen the company’s balance sheet and is expected to provide additional optionality across our global portfolio. With a number of exciting development opportunities that are not currently included within our five-year plan, this additional funding provides us financial flexibility to advance these projects, including the Perama Hill project in northern Greece,” he added.
Perama Hill is a high-quality project with consultation activities expected to commence later this year and then advance through the EIA process over the next two years. At Olympias, the company received a modified EIA in April that provides it the ability to expand the processing plant following ramp up of development of the underground.
In Canada, with an initial reserve expected next year at its Ormaque discovery, Eldorado expects to undertake additional trade-off studies to determine the optimum approach to incorporate into its plans. The company is also progressing with growth opportunities in Türkiye, including conversion of inferred resources at Efemçukuru, and early-stage exploration targets that have the potential to add to its production profile.
Shares of Eldorado Gold were up 0.6% by market close Wednesday, for a market capitalization of C$2.6 billion ($1.9bn).
