Eldorado Gold heads to arbitration in Greece
Eldorado Gold Corp. unit Hellas Gold SA has received notice from Greece’s Ministry of Finance and Ministry of Environment and Energy that the ministries have started domestic arbitration. The notice alleges that the Madem Lakkos plant study is deficient.
ELDORADO GOLD Corp.’s Greek subsidiary, Hellas Gold SA, today received a formal notice from Greece’s Ministry of Finance and Ministry of Environment and Energy initiating Greek domestic arbitration. This arbitration is pursuant to the provisions of the contract between the Greek state and Hellas Gold and in it the ministries have named its nominee to the three-person arbitral panel.
The arbitration notice alleges that the technical study for the Madem Lakkos metallurgical plant for treating Olympias and Skouries concentrates in the Stratoni Valley, submitted in December, 2014, is deficient and thereby is in violation of the transfer contract and the environmental terms of the project. The company is highly confident that the subject technical study is robust and consistent with the transfer contract, the business plan and the approved environmental terms of the project.
George Burns, president and chief executive officer of Eldorado Gold, said: “Eldorado has always sought a constructive relationship and dialogue with all levels of the Greek government. Despite the Greek government’s refusal to engage with Eldorado, we believe that this matter could still be resolved through good faith negotiations. We again invite the ministry to engage with us for such purpose. Nevertheless, we will vigorously defend our rights and employ all legal means at our disposal. We are confident in the completeness of our efforts in Greece, the rigour of our engineering and the vast potential benefit of these projects for regional and national stakeholders.
“We carry on business to the highest industry standards at all of our operations and projects, and we seek to implement best-in-class technologies wherever possible to meet commercial and environmental goals. This is acknowledged in our original agreements and will be reinforced through the resolution of this matter. What cannot be overlooked is the 2,400 people working directly for our projects in Greece to deliver high-quality mines and the significant contributions being made to Greece’s economy. Upon approval and receipt of all the required permits and a government that engages in good faith with the
company, we will then be in a position to reassess our investment options in Greece.”
About Eldorado Gold Corp. Eldorado is a leading intermediate gold producer with mining, development and exploration operations in Turkey, Greece, Romania, Serbia, Canada and Brazil.
We seek Safe Harbor.
George R Albino, George Raymond Burns, Pamela M Gibson, Robert Russell Gilmore, Geoffrey Arthur Handley, Michael A Price, Steven Paul Reid, Jonathan Arn Rubenstein, John Webster, Paul Nicholas Wright
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