Shares of Eldorado Gold Corp. (TSE:ELD), a Canadian gold producer, gained after the firm won an arbitration ruling in Greece that allows the company to move forward in completing construction of a metallurgy plant at its Skouries project in the country.
The arbitration panel rejected a finding by the Greek government, which had revoked the company’s construction permit for the Madem Lakkos site, that Eldorado’s technical study for the plant was in breach of a so-called Transfer Contract, the Vancouver-based firm said in a statement.
“We believe this decision provides a foundation to allow us to advance dialogue with the Greek government in order to define a mutually agreeable and clear path forward” for Eldorado’s investments, said Chief Executive Officer George Burns. “We look to the Greek state to fulfil its obligations under the Transfer contract including issuing the outstanding permits for the Skouries project.”
The shares rose 2.5% to US$0.93. They have fallen 35% in 2018, giving the company a market value of US$707mln.
In Toronto, shares added 3.51% to C$1.18.