Eldorado fully funded to complete Skouries build after EBRD invests $81.5M

Eldorado Gold (TSX: ELD) has closed the recently announced strategic investment of $81.5 million by the European Bank for Reconstruction and Development (EBRD). The institution bought 6.3 million shares at a price of $13 per share via a private placement financing.

As detailed in the May 30 announcement, 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 in its €680-million financing facility that closed in April.

With the EBRD investment, Eldorado now has 100% of the funding required to complete the Skouries project, which is expected to produce 140,000 oz. of gold and 67 million lb. of copper annually 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,” George Burns, CEO of Eldorado, said in the May 30 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.

Consultation activities at Perama Hill are expected to begin later this year, with the project advancing through the EIA process over the next two years. At Olympias, the company received a modified EIA in April that will allow it to expand the processing plant following ramp up of development of the underground mine.

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 Turkey, including conversion of inferred resources at Efemçukuru, and early-stage exploration targets that have the potential to add to its production profile