Canadian gold mining company Eldorado Gold said that its board has approved the restart of the Skouries gold-copper porphyry project in Greece having formalised a €680m project financing facility.

Eldorado Gold’s fully owned subsidiary Hellas Gold has entered into the project financing facility with the National Bank of Greece and Piraeus Bank.

In September 2022, the Canadian miner signed a mandate letter with the two Greek banks for the project finance facility.

The funding facility involves a €480m commercial loan, initial funding of €100m from the Greek recovery and resilience facility (RRF), and a €100m commercial bridge loan.

The €100m bridge loan is anticipated to be replaced by an additional RRF loan in 2023.

The restart of the Skouries project operations is conditional upon the initial drawdown of the funding facility.

According to its feasibility study, the gold-copper porphyry project will require an estimated capital cost of $845m for its development.

The Canadian gold mining company stated that the funding facility would provide 80% of the capital required to complete the project.

The remaining 20% is expected to be completely covered by the company’s existing cash and anticipated cash flow from operations.

Eldorado Gold president and CEO George Burns said: “Our focus now shifts to project execution, with first production expected in the second half of 2025, followed by a ramp-up as we optimise facilities.

“Once in production, Skouries will have a significant impact on Eldorado’s total gold production and cash cost profile and will diversify our business through revenue from copper.”

Located within the Halkidiki Peninsula of Northern Greece, the Skouries project with a total mine-life of around 20 years is expected to produce an aggregate of 140,000oz of gold and 67 million pounds of copper per annum.