TSX: ELD NYSE: EGO
VANCOUVER, Aug. 19, 2015 /CNW/ – Eldorado Gold (“Eldorado” or “the Company”) confirms that Hellas Gold S.A. – a Greek subsidiary of the Company – has been made aware of a notification from Greece’s Ministry of Energy (“the Ministry”) suspending the technical studies pertaining to the Skouries and Olympias projects in Halkidiki, northern Greece.
The suspension is based on testwork completed on the Olympias Phase III flash smelting process. This pilot scale test work was completed at Outotec’s comprehensive metallurgical and smelting facility inFinland, while the Ministry contends that it should have been done at site in Halkidiki.
The testwork is a part of the technical studies pertaining to both the Skouries and Olympias projects. The technical studies form the basis of a number of other permits required by the Company in order to proceed with the development and construction of the Skouries and Olympias projects. The Company is reviewing the notification of the Ministry with its technical and legal teams and will take legal action.
Paul Wright, Chief Executive Officer of Eldorado, commented: “We are most disappointed and perplexed by this entirely inappropriate decision of the Ministry of Energy, which puts 5,000 direct and indirect jobs inGreece at risk, including the jobs of 2,000 Greek employees and contractors of Hellas Gold. We have received numerous favorable decisions of the Council of State – Greece’s Supreme Court on administrative and environmental matters – over the course of the last three years, which confirm the legality of our activities in Halkidiki. We will once more take legal action against a decision of the Ministry in order to safeguard the rights of Eldorado, Hellas Gold, our Greek employees and the communities and stakeholders that support our projects in Halkidiki. At this time, work at all our Halkidiki operations and projects continues as normal; however, Hellas Gold may be forced to suspend all its mining and development activities in Halkidiki due to this rash decision by the Ministry of Energy.”
SOURCE Eldorado Gold Corporation