TSX: ELD NYSE: EGO
VANCOUVER, March 2, 2015 /CNW/ - Eldorado Gold ("Eldorado" or the
"Company") hereby informs that on Friday February 27, 2015, its Greek
subsidiary, Hellas Gold S.A., received a formal notice from Greece's
Ministry of Productive Reconstruction, Energy and Environment (the
"Ministry" or "Ministry of Energy") revoking the approval required to
complete final construction of the processing plant at the Skouries
Project. The notice from the Ministry indicates however, that the
Ministry may reverse its decision once it completes an internal review
process. Timing to complete this review process has not been stipulated
by the Ministry.
The Company believes the decision of the Ministry has no legal basis and
will, if necessary, act to protect the legal rights of the Company,
employees and stakeholders. At this moment in time the revocation of
this approval has no material impact on the construction schedule of
the Skouries Project and various site activities continue unabated. The
Company takes the opportunity to remind all stakeholders that the
integrity of the Environmental Impact Assessment (EIA) - the main
environmental permit supporting its projects in Halkidiki, Northern
Greece - has been confirmed by three separate rulings of the Council of
State, which is Greece's Supreme Court on administrative and
environmental matters.
Paul Wright, Chief Executive Officer of Eldorado, commented: "We have
2,000 people working directly for us and our contractors in Greece and
are making a significant contribution to the economy of the country
during challenging times. Since 2012 we have invested in excess of
US$450 million on the construction and development of two mines in
Greece - Skouries and Olympias. Once these two mines reach commercial
production, Hellas Gold will become one of Greece's top exporters. The
funds invested in Greece to date have been used primarily for payments
to Greek stakeholders, such as our employees, suppliers of goods and
services, contractors and government (the Greek State having received
in excess of 50 million euros in taxes as a result of our investments
since 2012). Thus the benefits of our investment to the Greek economy
are obvious to all. We remain committed to the responsible development
of our asset base in Greece and announced earlier this year that we
plan to invest US$310 million on the development of Skouries and
Olympias in 2015, which will generate additional jobs for the Greek
people and taxes for the Greek government. However, the recent decision
of the Ministry of Energy - if not reversed in a timely manner - may
force Eldorado to reconsider its investment plans for Greece.
Eldorado, Hellas Gold, its Greek employees, labor unions, and
pro-mining stakeholders from the Municipality of Aristotle in Halkidiki
look forward to engaging in a constructive dialogue with the new Greek
Government."
About Eldorado Gold
Eldorado is a leading low cost gold producer with mining, development
and exploration operations in Turkey, China, Greece, Romania and
Brazil. The Company's success to date is based on a low cost strategy,
a highly skilled and dedicated workforce, safe and responsible
operations, and long-term partnerships with the communities where it
operates. Eldorado's common shares trade on the Toronto Stock Exchange
(TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
Certain of the statements made herein may contain forward-looking
statements or information within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities laws. Often, but not always, forward-looking
statements and forward-looking information can be identified by the use
of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or the negatives thereof or variations of such words and
phrases or statements that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements or information herein include, but are not
limited, to statements or information with respect to the Company's
Greece Update.
Forward-looking statements and forward-looking information by their
nature are based on assumptions and involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements or information. We have
made certain assumptions about the forward-looking statements and
information, including assumptions about the legal restrictions
regarding the payment of dividends by the Company; assumptions about
the price of gold; anticipated costs and expenditures; estimated
production, mineral reserves and metallurgical recoveries; financial
position, reserves and resources and gold production; and the ability to achieve our goals. Although our management believes
that the assumptions made and the expectations represented by such
statements or information are reasonable, there can be no assurance
that the forward-looking statements or information will prove to be
accurate. Furthermore, should one or more of the risks, uncertainties
or other factors materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in
forward-looking statements or information. These risks, uncertainties
and other factors include, among others, the following: gold price
volatility; risks of not meeting production and cost targets;
discrepancies between actual and estimated production, mineral reserves
and resources and metallurgical recoveries; mining operational and
development risk; litigation risks; regulatory restrictions, including
environmental regulatory restrictions and liability; risks of sovereign
investment and operating in foreign countries; currency fluctuations;
speculative nature of gold exploration; global economic climate;
dilution; share price volatility; competition; loss of key employees;
additional funding requirements; and defective title to mineral claims
or property, as well as those factors discussed in the sections
entitled "Forward-Looking Statements" and "Risk Factors" in the
Company's Annual Information Form & Form 40-F dated March 28, 2014
There can be no assurance that forward-looking statements or information
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, you should not place undue reliance on the forward-looking
statements or information contained herein. Except as required by law,
we do not expect to update forward-looking statements and information
continually as conditions change and you are referred to the full
discussion of the Company's business contained in the Company's reports
filed with the securities regulatory authorities in Canada and the U.S.
SOURCE Eldorado Gold Corporation
