Eldorado Gold Corporation, (“Eldorado” or “the Company”) reports
that it has drawn $150 million under its revolving credit facility
as a proactive measure in light of the uncertainty surrounding the
COVID-19 pandemic. The Company has no immediate need for the funds,
however proceeds will be used for general corporate purposes, as
required. The Company is also reviewing its 2020 sustaining and
growth capital budget and will reduce expenditures if required.
The monies have been drawndown under the
Company’s $450 million Third Amended and Restated Senior Credit
Facility dated June 5, 2019. The applicable interest rate on the
funds is a function of the Company’s net leverage ratio as at the
last day of the most recently completed fiscal quarter and is based
on the London Interbank Offering Rate (“LIBOR”) plus a premium of
2.25%-3.25%.
“We are continuing to take proactive steps to
protect our people and our business and have commenced task
observations at our operations to ensure that work is being done
appropriately with respect to control measures such as social
distancing,” said George Burns, President and CEO. “Further,
although we have no immediate need for the funds, drawing on our
credit facility is financially prudent at this time. We would
like to acknowledge our lenders and all external stakeholders for
continuing to support us, our workforce and the local communities
relevant to our business.”
The Company continues to monitor the operating
environment closely in the jurisdictions where it operates.
Eldorado has implemented additional controls at all its operations
and offices around the globe to further protect the health and
safety of its workforce, their families and neighboring
communities, which include:
- Task observations to ensure that workplace controls in place
are effective in maintaining physical distance. Procedures
will be modified where necessary to create distance. Tasks
that cannot be effectively modified will be discontinued until an
appropriate change is implemented.
- Advising employees to stay at home if they are at risk or have
family members at home at risk.
About Eldorado Gold
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkey, Canada,
Greece, Romania and Brazil. 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 shares trade on the Toronto
Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE:
EGO).
Contacts
Investor RelationsPeter Lekich,
Manager Investor Relations604.687.4018 or
1.888.353.8166 peter.lekich@eldoradogold.com
MediaLouise Burgess, Director
Communications & Government Relations604.687.4018 or
1.888.353.8166 louise.burgess@eldoradogold.com
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. Often, these forward-looking statements and
forward-looking information can be identified by the use of words
such as "plans", "expects", "is expected", "budget", “continue”,
“projected”, "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or the negatives thereof or variations
of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved.
Forward-looking statements or information
contained in this release include, but are not limited to,
statements or information with respect to: the duration or extent
of the restrictions and suspensions with respect to our operations
and the effect that any such restrictions or suspensions may have
on our operations and our financial and operational results; the
ability of the Company to continue with any of our operations, or
to successfully maintain our operations while they are temporarily
suspended ,or to restart or ramp-up these operations efficiently or
economically, or at all, the impact of COVID-19 on our workforce,
suppliers and other essential resources and what effect those
impacts, if they occur, would have on our business, our planned
capital and exploration expenditures; our expectation as to our
future financial and operating performance, gold price outlook and
the global concentrate market; and our strategy, plans and goals,
including our proposed exploration, development, construction,
permitting and operating plans and priorities and related timelines
and schedules.
Forward-looking statements and forward-looking
information by their nature are based on assumptions and involve
known and unknown risks, market 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 regarding how
the world-wide economic and social impact of COVID-19 is managed
and the duration and extent of the COVID 19 pandemic, the tonnage
of ore to be mined and processed; ore grades and recoveries,
decommissioning estimates, the geopolitical, economic, permitting
and legal climate that we operate in; the future price of gold and
other commodities; the global concentrate market; exchange rates;
anticipated costs and expenses; production, mineral reserves and
resources and metallurgical recoveries, the impact of acquisitions,
dispositions, suspensions or delays on our business and the ability
to achieve our goals. In particular, 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
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 prove to be
accurate. Many assumptions may be difficult to predict and are
beyond our control.
Furthermore, should one or more of the risks,
uncertainties or other factors materialize, or should underlying
assumptions prove 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 duration and effects of COVID-19, and any other pandemics on
our operations and workforce, and the effects on global economies
and society,; geopolitical and economic climate (global and local),
risks related to mineral tenure and permits; gold and other
commodity price volatility; continued softening of the global
concentrate market; risks regarding potential and pending
litigation and arbitration proceedings relating to the Company’s,
business, properties and operations; expected impact on reserves
and the carrying value; the updating of the reserve and resource
models and life of mine plans; mining operational and development
risk; financing risks, foreign country operational risks; risks of
sovereign investment; regulatory risks and liabilities including,
environmental regulatory restrictions and liability; discrepancies
between actual and estimated production, mineral reserves and
resources and metallurgical testing and recoveries; additional
funding requirements; currency fluctuations; community and
non-governmental organization actions; speculative nature of gold
exploration; dilution; share price volatility and the price of the
common shares of the Company; competition; loss of key employees;
and defective title to mineral claims or properties, as well as
those risk factors discussed in the sections titled
“Forward-Looking Statements” and "Risk factors in our business" in
the Company's 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 and other
regulatory filings filed on SEDAR under our Company name, which
discussion is incorporated by reference in this release, for a
fuller understanding of the risks and uncertainties that affect the
Company’s business and operations.
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 the 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.
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