Hellas Gold signs amended agreement for Kassandra Mines in Greece
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Hellas Gold signs amended agreement for Kassandra Mines in Greece

08 Feb 2021

Hellas Gold, the wholly owned subsidiary of Eldorado Gold, has signed an amended investment agreement with the Greek government in regard to the Kassandra Mines.

Hellas Gold signs amended agreement for Kassandra Mines in Greece
Skouries is a high-grade gold-copper porphyry project. Credit: Παρατηρητήριο Μεταλλευτικών Δραστηριοτήτων.

Hellas Gold, the wholly owned subsidiary of Eldorado Gold, has signed an amended investment agreement with the Greek government in regard to the Kassandra Mines.

The Kassandra Mines comprise the Skouries, Olympias, and Stratoni/Mavres Petres mines and facilities in northern Greece.

The agreement was signed to govern the further development, construction and operation of these mines and facilities.

Providing a modernised legal and financial framework to allow for the advancement of Eldorado Gold’s investment in the Kassandra Mines, the company said the agreement is mutually beneficial to the company and the government.

An optimised Investment Plan, which is part of the agreement, will allow for completion of construction at Skouries and transition of the project into production and expansion of Olympias to 650,000t a year.

Furthermore, it will allow upgrades to the port facilities at Stratoni for bulk concentrate shipments and investment in exploration at Mavres Petres-Stratoni.

Eldorado Gold noted that the agreement will be formally submitted to the Greek Parliament for ratification and become effective once published in the Greek Government Gazette, which follows the ratification.

Eldorado Gold president and CEO George Burns said: “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.”

Additionally, the agreement enables a permitting framework allowing for a clear path to production and stable operations and increased fiscal revenues for all levels of government.

Over the life of the mines, it is expected to create about 3,000 jobs and an $80m commitment to community projects.

Skouries is a high-grade gold-copper porphyry project while Olympias is a gold-silver-lead-zinc mine.

In September 2019, Eldorado Gold received electromechanical installation permits for its Skouries project and Olympias mine.