Eldorado Gold Corp (NYSE:EGO) has confirmed that the Arbitration Panel in Greece which had been formed in respect to an arbitration initiated by the Greek State has issued its ruling. In its ruling, the panel has rejected the motion by the Greek State that the technical study Madem Lakkos metallurgy plant used in treatment of Skouries and Olympias concentrates, which was submitted by Hellas Gold S.A, the company’s Greek subsidiary, breached the provisions of the Transfer Contract
The Transfer Contract is an agreement which was signed on December 12, 2003, through which Hellas Gold initially acquired the Kassandra assets, which are comprised of Stratoni, Skouries and Olympias all located in the Halkidiki region of Greece. The agreement was ratified Greek National Law No 3220/2004.
The company, working with Hellas Gold will continue to evaluate the ruling and come up with the next course of action in regards to the company’s Kassandra investments.
While commenting on the ruling, Eldorado Gold’s President and CEO George Burns said the company will accept and respect the ruling of the panel adding that they have always acted in good faith and in a way that is in accordance with the company’s obligations under the Transfer Contract. These obligations, he said include a commitment to develop the Kassandra assets as approved by the Greek State for the Environmental Impact Study in 2011 as well as Investment Plan in 2006.
Burns said that as a company, the believe that the ruling by the panel is a window that will enable the company advance the discussion with the government of Greek so as to come up with a mutually agreeable and clear way forward for the Kassandra investments. He added that they are looking at the Greek State to fulfill its side of the bargain as laid out in the Transfer Contract. These include the giving the required permits for the Skouries project. Burns said that the full, responsible and efficient development of the Kassandra assets will be a big benefit to the Greek State together with its citizens, the company’s shareholders, the local community and the company’s employees.