UPDATE 3-Eldorado gets more Greek mine permits, but standoff persists

From Reuters - September 15, 2017

ATHENS/TORONTO (Reuters) - Greece granted Eldorado Gold Corp two remaining permits on Friday for its Olympias mine, the governments latest attempt to defuse a standoff with the Canadian miner, which has threatened to suspend investment in the country.

After Eldorado warned on Monday that it could halt new investment starting Sept. 22, blaming years-long permit delays and a lack of information on an upcoming arbitration, Greece issued key mine permits on Wednesday and detailed arbitration proceedings on Thursday.

But the Vancouver-based miner continues to insist that it will only reconsider its investment plans after receiving a outstanding permit for a plant in Skouries and the government shows a willingness to engage in constructive talks.

This is another positive step forward. However, we are still waiting on the other matters, which we continue to believe can be resolved through good faith negotiations, Eldorado Chief Executive George Burns said in a statement.

Eldorado shares dipped about 2.4 percent in early trade on Friday, to C$2.83 in Toronto and $2.32 in New York, mirroring broad declines for gold miners. The stock had soared more than 20 percent this week.

We are of the view that Eldorados recent decision has motivated the European government to scrutinize Greek policy regarding foreign investment, specifically regarding the company, BMO analyst Andrew Kaip said in a note to clients.

We see this as a positive event given that the company has invested an additional (approximate) $1 billion in the country since its $2 billion acquisition in 2012.


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