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(Kitco News) - Eldorado Gold (TSX: ELD) (NYSE: EGO) announced today that it has entered into agreements with respect to a C$81.5 million strategic investment in Eldorado by the European Bank for Reconstruction and Development (the EBRD).
In a statement, the company said that 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.
Eldorado noted that 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 said it has entered into an agreement with BMO Capital Markets and National Bank Financial, on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase on a bought deal basis 10,400,000 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.
Moreover, 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.
According to a press release, proceeds from the offering will be used to fund growth initiatives across the company’s global portfolio, including some not currently contemplated within its 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.”
Eldorado Gold is a gold and base metals producer with mining, development and exploration operations in Turkiye, Canada and Greece.
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