The agreement is aimed at advancing the Canadian miner’s investment in the Kassandra Mines in northern Greece
The amended agreement for the Kassandra Mines will enable completion of construction of the Skouries project. (Credit: Eldorado Gold Corp.)
The Greek Parliament has approved and ratified an amended agreement between the government with Eldorado Gold pertaining to the Kassandra mines.
The amended agreement was signed with Eldorado Gold’s fully-owned subsidiary, Hellas Gold in February 2021. It is aimed at advancing Eldorado Gold’s investment in the Kassandra mines located in northern Greece.
The modified agreement replaces the 2003 transfer agreement and gives a modernised legal and financial framework for the further development, construction, and operation of the Kassandra project.
The Kassandra mines include the Skouries, Olympias, and Stratoni/Mavres Petres mines and facilities.
Eldorado Gold said that the changes in the agreement will come into effect after it is published shortly in the Greek Government Gazette.
The Canadian gold miner said that the amended agreement gives investor protection mechanisms. These include a permitting framework, which is similar to the ones used for other large-scale foreign investment agreements in Greece.
For Greece, the modified agreement paves the way for improved fiscal revenues, environmental benefits, and scope for community development, said the company.
Eldorado Gold president and CEO George Burns said: “With the support of the Greek Parliament, we are another step closer to advancing these key projects, which present significant opportunities for Eldorado and the broad range of stakeholders involved in the Kassandra Mines.
“Ratification of this Agreement further signals Greece’s commitment to attracting and working with foreign investors.”
The agreement features a streamlined investment plan that enables Eldorado Gold to complete construction at the Skouries gold-copper porphyry project to take it into production.
The investment plan also includes the expansion of the Olympias gold-silver-lead-zinc mine for producing 650,000 tonnes per annum. It also allows upgrading the port facilities at Stratoni to enable bulk shipment of concentrates.
Besides, Eldorado Gold will be able to make further investment in exploration at Mavres Petres-Stratoni and also continue studying on-site gold processing methods.
In late 2017, the Canadian miner announced that it will suspend investments in its Greek mines, citing adverse impact on its project schedules and costs due to government delays in issuing permits and licenses.