Skouries project is expected to produce an aggregate of 140,000oz of gold and 67 million pounds of copper per annum

Canadian firm Eldorado Gold has signed a mandate letter for a credit-committee-sanctioned €680m finance facility from Greek banks to develop the Skouries project in northern Greece.

The mandate letter, which is subject to negotiation of definitive loan documentation and other conditions, includes a long-form term sheet comprising customary terms and conditions.

According to the feasibility study, the project is expected to cost $845m for development.

Eldorado president and CEO George Burns said: “We believe that Skouries is a world-class project that will have a lasting positive economic and social impact for Greece, the communities we work in, and other stakeholders.

“We remain confident in the feasibility study capital cost estimate of $845m, and with the project finance facility in place, the company has the balance sheet capacity to fund the remaining capital cost for completion of the project.

“We also continue to evaluate opportunities for complementary sources of financing. A final decision to re-start construction remains subject to board approval, which we expect to seek in the second half of 2022.”

Part of the Kassandra Mines Complex, the Skouries project is a gold-copper porphyry deposit located within the Halkidiki Peninsula of Northern Greece.

With an anticipated operational life of 20 years, the project is expected to produce an aggregate of 140,000oz of gold and 67 million pounds of copper per annum.

The deposit is planned to be mined using a combination of conventional open pit and underground mining techniques, Eldorado said.

Through its first production, the project is expected to pay back the costs within less than four years and generate an average free cash flow of $215m per year in the first five years, Mining Technology writes.

Euro Sun close to getting final approvals for gold-copper project in Romania

Canada-based Euro Sun Mining said on Thursday that it is close to getting the final approvals it needed in order to obtain an exploitation permit for its Rovina Valley gold and copper project in Romania.

The company has submitted the Strategic Environmental Assessment (SEA) along with the Zonal Urban Plan (PUZ) – the final documents required prior to seeking approval by the environment ministry and subsequently getting the permits for construction, it said in a press release.

“We believe that the Rovina Valley project will provide access to significant employment and economic value in the Hunedoara area and would be a key strategic asset for Romania and the EU,” Euro Sun Mining chief operating officer Sam Rasmussen said.

The company aims to become a critical supplier of copper and gold for development of the European Union.

“Two significant examples of responsible mining are the lack of cyanide in the Rovina Valley Project’s processing circuit and the placement of dry or filtered tailings, eliminating the possibility of a catastrophic dam failure. The Rovina Valley project will provide strong economic benefits to all our local communities, the region and to the Romanian state incorporating the highest environmental practices,” Euro Sun Mining CEO Scott Moore said.

In February, Euro Sun Mining entered into a 3.5 million Canadian dollars ($2.75 million/2.42 million euro) convertible security funding agreement with Lind Global Fund II, part of which it plans to invest in the Rovina Valley project.

In March 2021, Euro Sun announced that it estimates a robust gold and copper output and total initial capital expenditures (CAPEX) of $399 million at Rovina Valley, following positive results of the definitive feasibility study which uncovered a potential average annual gold equivalent production of 146,000 ounces over the first ten years, consisting of 106,000 ounces of gold and 19 million pounds of copper per annum.

Toronto-listed Euro Sun is a mining company focused on the exploration and development of its 100%-owned Rovina Valley gold and copper project located in west-central Romania, which hosts the second largest gold deposit in Europe, SeeNews reports.