Eldorado Gold Announces C$81.5 Million Strategic Investment by the European Bank for Reconstruction and Development (EBRD) and Concurrent C$135 Million Bought Deal Financing
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NEWS RELEASE
TSX: ELD NYSE: EGO May 30, 2023
Eldorado Gold Announces C$81.5 Million Strategic Investment by the European
Bank for Reconstruction and Development (EBRD) and Concurrent C$135 Million
Bought Deal Financing
VANCOUVER, BC – Eldorado Gold Corporation (“Eldorado” or the “Company”) is pleased to announce it
has entered into agreement s with respect to a C$81.5 million strategic investment in Eldorado by the
European Bank for Reconstruction and Development (the "EBRD"). The investment is to be effected by way
of a private placement whereby the EBRD will subscribe for 6,269,231 shares at a price of C$13.00 per share.
(the “Private Placement”). The proceeds of the Private Placement will be invested in the Skouries project in
Northern Greece, and will be credited against the Company’s 20% equity funding commitment per the terms
of the project financing facility that closed on April 5, 2023.
In addition , the Company has entered into a n agreement with BMO Capital Markets and National Bank
Financial, on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the
Underwriters have agreed to purchase on a bought deal basis 10,400,000 million Common Shares of the
Company at the same price as the EBRD Private Placement of C$13.00 per Common Share , for gross
proceeds of C$135 million (the “Offering”). In addition, the Company has granted the Underwriters an over-
allotment option to purchase up to an additional 1,560,000 common shares, exercisable, in whole or in part,
at any time up to 30 days from the closing of the Offering. In the event that the option is exercised in its
entirety, the aggregate gross proceeds of the Offering would be C$155 million. Proceeds from the Offering
will be used to fund growth initiatives across the global portfolio, including some not currently contemplated
within the Company’s five-year plan, as well as for general corporate and working capital purposes.
“We are pleased to be announcing a strategic equity investment from the EBRD and we view its investment
as an endorsement of the Skouries project and Eldorado’s commitment to the highest environmental and social
standards across our portfolio ,” said George Burns, President and CEO of Eldorado. “ The EBRD's equity
investment, coupled with the Greek lenders in our recently closed project finance facility, provides strategic
partners as we advance Skouries towards commercial production,” continued Burns.
“Proceeds from t his financing will strengthen the Company’s balance sheet and is expected to provide
additional optionality across our global portfolio. With a number of exciting development opportunities that
are not currently included within our five -year plan, this additional funding provides us financial flexibility to
advance these projects, including the Perama Hill project in Northern Greece . Perama Hill is a high -quality
project with consultation activities expected to commence later this year and then advance through the EIA
process over the next two years. At Olympias, we received a modified EIA in April that provides us the ability
to expand the processing plant following ramp up of development of the underground. In Canada, with a
maiden reserve expected ne xt year at our Ormaque discovery , we expect to undertake additional trade -off
studies to determine the optimum approach to incorporate it into our plans. Additionally, in Türkiye, we have
a number of exciting opportunities, including conversion of inferred resources at Efemçukuru and early-stage
exploration targets that have the potential to add to an already robust production profile,” added Burns.
“We are pleased that the EBRD is becoming a shareholder in Eldorado ,” said Natalia Lacorzana, Head of
Natural Resources at the EBRD. “With this landmark equity transaction, the EBRD, as a long-term investor,
will play an important role in ensuring that the Skouries project is developed and operated in line with best
environmental and social practices, in particular in relation to stakeholder engagement. Copper is crucial for
many applications in today’s economy, and the demand for copper is expected to increase with the global
move towards electric vehicles and renewable energy applications, as both of these sectors require large
volumes of the metal.”
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The Common Shares are being offered for sale pursuant to the Offering in all of the provinces and territories
of Canada by way of a Canadian prospectus supplement to the Company’s Canadian short form base shelf
prospectus dated May 18, 2023. The Common Shares are being offered for sale in the public offering in the
United States pursuant to an effective registration statement (including a prospectus supplement thereto)
filed under the U.S. multi -jurisdictional disclosure system. Before investing, prospective purchasers in
Canada should read the Canadian prospectus supplement, the Canadian short form base shelf prospectus
and the documents incorporated by reference therein for the purposes of the public offering, and prospective
purchasers in the United States should read the prospectus in the U.S. registration statement, the U.S.
prospectus supplement and the documents incorporated by reference therein for more complete information
about the Company and the public offering in Canada and the United States. Common Shares may also be
offered on a private placement basis in other international jurisdictions in reliance on applicable private
placement exemptions.
The Offering is expected to close on or about June 7, 2023 and is subject to a number of customary closing
conditions, including the approval of the Toronto Stock Exchange and New York Stock Exchange. The closing
of the Offering is not conditional on the closing of the Private Placement.
The Private Placement is expected to close on or about June 13, 2023 following completion of the Offering,
and is not conditional on the closing of the Offering. The Private Placement is also subject to a number of
customary conditions, including the approval of the Toronto Stock Exchange and New York Stock Exchange.
In addition, and as part of the Private Placement, the Company and EBRD have entered into a Project Support
Agreement, pursuant to which, amongst other things, the Company has agreed to provide EBRD with certain
ongoing reporting rights regarding the development and operations of the Skouries Project, as well as
customary anti-dilution rights with respect to its investment in the Company. All securities issued under the
Private Placement will be subject to a hold period expiring four months and one day from the date of issuance.
Copies of the Canadian and U.S. prospectus supplements, the Canadian short form base shelf prospectus,
when available, and the registration statement on Form F-10 (File No. 333-272043), when available, may be
obtained upon request in Canada by contacting BMO Nesbitt Burns Inc., Brampton Distribution Centre C/O
The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 by telephone at 905-791-
3151 Ext 4312 or by email at [email protected], and in the United States by contacting BMO
Capital Markets Corp., Attn: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY
10036, or by telephone at (80 0) 414 -3627 or by email at [email protected]. Copies of the
aforementioned offering documents, when available may also be obtained from National Bank Financial Inc.,
130 King Street West, Suite 3200, Toronto, ON M5X 1J9 or by telephone at (416) 869 -6534 or by email at
[email protected]. Copies of the applicable offering documents, when available, can be obtained free
of charge under the Company’s profile on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor
shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities laws of any such state or
jurisdiction.
About Eldorado Gold
Eldorado is a gold and base metals producer with mining, development and exploration operations in
Turkiye, Canada and Greece. The Company has a highly skilled and dedicated workforce, safe and
responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities.
Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock
Exchange (NYSE: EGO).
About EBRD
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The European Bank for Reconstruction and Development was established in 1991 to help build a new, post-
Cold War era in Central and Eastern Europe. It has since played a historic role and gained unique expertise
in fostering change in the region - and beyond - investing €170 billion in more than 6,400 projects. The EBRD
is committed to furthering progress towards ‘market -oriented economies and the promotion of private and
entrepreneurial initiative’.
Contact
Investor Relations
Lynette Gould, VP, Investor Relations
647.271.2827 or 1.888.353.8166
Cautionary Note about Forward-looking Statements and Information
Certain of the statements made and information provided in this press release are forward-looking statements or information within the
meaning of the Un ited States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, these
forward-looking statements and forward -looking information can be identified by the use of words such as “believes”, “budgets”,
“commitment”, “confident”, “estimates”, “expects”, “forecasts”, “intends”, “plans”, “potential”, “prospective”, or “schedule” or the negatives
thereof or variations of such words and phrases or statements that certain actions, events or results “can”, “could”, “likely”, “may”, “might”,
“will” or “would” be taken, occur or be achieved.
Forward-looking statements or information contained in this press release include, but are not limited to, statements or information with
respect to: the closing of, and net proceeds from, the sale of the Company’s common shares under the Private Placement and the
Offering; statements regarding the intended use of proceeds; expectations regarding improved environmental and social practic es at
Skouries as a consequence of EBRD becoming an investor; timing with respect to the filing of the prospectus supplements; expectations
regarding advancement and development of Skouries; statements regarding the anticipated rise in global demand for copper; the
Company’s ability to fund the remaining 20% funding commitment; statements regarding the Company's other project development
plans and activities , including advancing the Perama Hill project and exploration targets in Turkiye ; commencement of consultation
activities and an EIA process at Perama Hill, and timing thereof; risk factors affecting our business; ou r expectations as to our future
financial and operating performance. 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 t he 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 t he forward-looking statements and information, including assumptions about: the ability of
the Company to satisfy closing conditions of the offerings, including obtaining all required regulatory approvals; the total funding required
to complete the Skouries project; our ability to execute our plans relating to Skouries, including the timing thereof; our ability to execute
our plans relating to the Perama Hill project, including any consultation activities and commencment of an EIA process, and in Turkiye,
and the timing thereof; our ability to obtain all required approvals and permits; cost estimates in respect of Skouries; no changes in input
costs, exchange rates, development and gold; the geopolitical, economic, permitting and legal climate that we operat e in, including at
Skouries; how the worldwide economic and social impact of COVID -19 is managed and the duration and extent of the COVID -19
pandemic; timing, cost and results of our construction and exploration; the future price of gold and other commodit ies; the global
concentrate market; exchange rates; anticipated values, costs, expenses and working capital requirements; production and metallurgical
recoveries; mineral reserves and resources; and the impact of acquisitions, dispositions, suspensions or delays on our business and
the ability to achieve our goals. In addition, except where otherwise stated, we have assumed a continuation of existing busi ness
operations on substantially the same basis as exists at the time of this press release.
Even though 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 statement or information will prove to be accurate. Many
assumptions may be difficult to predict and are beyond our control.
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions pr ove
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: the Company’s ability to satisfy the closing conditions of the Private Placement
and Offering, including obtaining any required c onsents and documents; the need for continued cooperation of the initial purchasers;
ability to execute on plans relating to Skouries, including the timing thereof, ability to achieve the social impacts and ben efits
contemplated; ability to execute our plans relating to the Perama Hill project, including any consultation activities and comm encement
of an EIA process, and in Turkiye, and the timing thereof; inability to meet production guidance; risks relating to the ongoing COVID-19
pandemic and any future pandemic, epidemic, endemic or similar public health threats; risks relating to our operations being located in
foreign jurisdictions; community relations and social license; climate change; liquidity and financing risks; development ris ks;
indebtedness, including current and future operating restrictions, implications of a change of control, ability to meet debt service
obligations, the implications of defaulting on obligations and change in credit ratings; environmental matters; waste disposal; the global
economic environment; government regulation; reliance on a limited number of smelters and off -takers; commodity price risk; mineral
tenure; permits; risks relating to environmental sustainability and governance practices and performance; non -governmental
organizations; corruption, bribery and sanctions; litigation and contracts; information technology systems; estimation of mineral reserves
and mineral resources; production and processing estimates; credit risk; actions of activist shareholders; price vol atility, volume
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fluctuations and dilution risk in respect of our shares; reliance on infrastructure, commodities and consumables; currency risk; inflation
risk; interest rate risk; tax matters; dividends; financial reporting, including relating to the carr ying value of our assets and changes in
reporting standards; labour, including relating to employee/union relations, employee misconduct, key personnel, skilled work force,
expatriates and contractors; reclamation and long -term obligations; regulated substances; necessary equipment; co-ownership of our
properties; acquisitions, including integration risks, and dispositions; the unavailability of insurance; conflicts of interest; compliance with
privacy legislation; reputational issues; competition, as well a s those risk factors discussed in the sections titled “Forward -looking
information and risks” and “Risk factors in our business” in our most recent Annual Information Form & Form 40-F. The reader is directed
to carefully review the detailed risk discussion in our most recent Annual Information Form & Form 40 -F filed on SEDAR and EDGAR
under our Company name, which discussion is incorporated by reference in this release, for a fuller understanding of the risk s and
uncertainties that affect our business and operations.
The inclusion of forward -looking statements and information is designed to help you understand management’s current views of our
near- and longer-term prospects, and it may not be appropriate for other purposes.
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 or information. 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 busi ness
contained in the Company’s reports filed with the securities regulatory authorities in Canada and the United States.