Eldorado Gold Closes €680 million Project Financing Facility for the Development of Skouries
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NEWS RELEASE
TSX: ELD NYSE: EGO April 5, 2023
Eldorado Gold Closes €680 million Project Financing Facility for the
Development of Skouries
VANCOUVER, BC – Eldorado Gold Corporation (“Eldorado” or the “Company”) and its wholly -owned
subsidiary, Hellas Gold Single Member S.A. (“Hellas”), are pleased to announce that Hellas has satisfied all
necessary precedent conditions and has closed its previously announced €680 million project financing facility
(the “Facility”) for the development of the Skouries Project in Northern Greece (“Skouries” or the “Project”).
The Facility is structured to provide 80% of the funding required to complete the Project, with the remaining
20% to be funded by the Company. Hellas contributed €31.2 million (approximately US$34.0 million) from
January 2022 through to the end of March 2023, on early works activities at Skouries, which will be applied
as a credit towards the Company’s equity commitment per the terms of the Facility. The Company’s equity
commitment for the Project is backstopped by a letter of credit in the amount of €190 million issued under the
Company’s revolving credit facility. The letter of credit will be reduced Euro for Euro as the Company invests
further in the Project.
As noted in the Company’s December 15, 2022, news release, in accordance with the terms of the Facility,
Hellas has entered into a secured hedging program that covers gold and copper prices, an interest rate swap
and US dollar to Euro exchange rate arrangements. The key terms of the hedging program are as follows:
1. Limited forward sales for delivery on June 30, 2026, as follows:
• Gold: 32,000 ounces of gold at a forward price of US$2,160 per ounce; and
• Copper: 6,160 tonnes of copper at a forward price of US$8,525 per tonne.
2. Hellas has entered into an interest rate swap covering 70% of the variable interest rate exposure, per the
terms of the Facility. Details of the interest rate swap are as follows:
Term Term Detail
Interest Payment Frequency 6 months
Floating Index 6-month Euribor
Tenor 9 years
Effective Date April 6, 2023
Maturity Date December 31, 2032
Fixed Rate 3.11%
3. Hellas has entered into foreign exchange hedgi ng arrangements to fix the US dollar to Euro exchange
rate for a portion of the Facility repayments:
Delivery Dates Euro Notional Forward Rate
June 30, 2026 17,000,000 1.1362
December 31, 2026 17,000,000 1.1393
June 30, 2027 17,000,000 1.1423
December 31, 2027 17,000,000 1.1455
June 30, 2028 17,000,000 1.1487
December 29, 2028 17,000,000 1.1521
June 29, 2029 17,000,000 1.1554
December 31, 2029 17,000,000 1.1587
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June 28, 2030 11,350,000 1.1619
December 31, 2030 11,350,000 1.1655
June 30, 2031 11,350,000 1.1688
December 31, 2031 11,350,000 1.1722
June 30, 2032 11,350,000 1.1755
December 30, 2032 11,350,000 1.1787
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 s hares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock
Exchange (NYSE: EGO).
Contact
Investor Relations
Philip Yee, EVP and Chief Financial Officer
604.687 4018 or 1.888.353.8166
Media
Louise McMahon, Director Communications & Public Affairs
604.757 5573 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 United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Of ten, 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 total funding requirements for the Project, including the sources thereof; the drawdown of the proceed s of the Facility,
including the timing thereof; the Company’s ability to fund the remaining 20% equity funding commitment, the Company’s hedging
strategy; risk factors affecting our business; our expectations as to our future financial and operating performance, including future cash
flow, estimated cash costs, expected metallurgical recoveries and gold and copper price outlook; and our strategy, plans and goals,
including our proposed exploration, development, construction, permitting and operating plans and priorities, related timelines and
schedules. 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 total
funding required to complete the Project; our ability to meet our timing objectives for drawdown of funds under the Facility and to provide
our equity commitment; our ability to execute our plans relating to Skouries, including 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 operate 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 futu re price of gold and other commodities; the global concentrate market; exchange rates; anticipated values,
costs, expenses and working capital requirements; production and metallurgical recoveries; mineral reserves and resources; an d 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 business 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 prov e to be accurate. Many
assumptions may be difficult to predict and are beyond our control.
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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: increases in financing costs or adverse changes to the Facility and our revolving
credit facility; failure or delays to receive necessary approvals or otherwise satisfy the conditions to the drawdown of the Facility; the
proceeds of the Facility not being available to the Company or Hellas; ability to execute on plans relating to Skouries, including the timing
thereof, ability to achieve the social impacts and benefits contemplated; inability to meet production guidance; risks relati ng 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 fina ncing risks,
including our ability to further draw under our revolving credit facility ; development risks; indebte dness, including current and future
operating restrictions, implications of a change of control, ability to meet debt service obligations, the implications of de faulting on
obligations and change in credit ratings; environmental matters; waste disposal; th e 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; pr oduction
and processing estimates; credit risk; actions of activist shareholders; price volatility, volume 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 carrying value of our assets and changes in reporting standards; labour, including
relating to employee/union relations, employee misconduct, key personnel, skilled workforce, expatriates and contractors; rec lamation
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 legislat ion; reputational
issues; competition, as well as 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 risks and uncertainties that affec t 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. Accordingly, you should not place undue reliance on t he 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 United States.