Eldorado Gold announces the closing of the sale of Tocantinzinho to G


VANCOUVER, British Columbia, October 27, 2021 (GLOBE NEWSWIRE) – Eldorado Gold Company (“Eldorado” or “the Company”) announces that it has completed the previously announced sale of the Tocantinzinho (“TZ”) project to G Mining Ventures Corp. (“GMIN”).

In connection with the Closing, Eldorado and GMIN entered into an Investor Rights Agreement (“Investor Rights Agreement”), which grants Eldorado certain rights as long as it retains ownership of 10% of the common shares of GMIN on an undiluted basis. The investor rights agreement includes:

  • A usual blocking period until the earlier of two (i) two years, and (ii) GMIN making a positive build decision on TZ.
  • The right for Eldorado to participate in future offers of shares of GMIN in order to retain the greater of 19.9% ​​of the share capital of GMIN and the proportional interest of Eldorado before the offer.
  • Additional customary rights and restrictions for a transaction of this nature.

“The sale of TZ provides immediate value to Eldorado and also allows us to maintain significant exposure to future value creation through our ownership interest in GMIN,” said George Burns, President and CEO of Eldorado. “We believe the combination of GMIN and the existing local Brazilian management group is the right team to responsibly grow the asset. We look forward to following and supporting their success.

Early warning disclosure

Prior to the closing of the sale of TZ to GMIN, Eldorado did not hold any common shares of GMIN. As a result of this sale, Eldorado owns 46,926,372 common shares of GMIN, representing 19.9% ​​of the issued and outstanding common shares of GMIN, which were issued to Eldorado as partial consideration for the sale of TZ. Eldorado also received an initial consideration of US $ 20 million in cash and a deferred consideration of US $ 60 million in cash payable subject to the start of commercial production of TZ, payable on the first anniversary of commercial production (” deferred consideration ”). GMIN has the option to defer 50% of the deferred consideration at a cost of US $ 5 million, in which case US $ 30 million is payable on the first anniversary of the start of commercial production and US $ 35 million is payable at second anniversary of the start of commercial production. The common shares of GMIN issued to Eldorado were issued at a deemed offering price of CA $ 0.924 for an aggregate deemed value of US $ 34.7 million.

Eldorado indicates that the securities were acquired for investment purposes. Eldorado may, depending on the market and other conditions, increase or decrease its beneficial ownership of the securities of GMIN, whether in the open market, through privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investments and professional opportunities.

This disclosure is provided in accordance with Multilateral NI 62-104, which also requires the filing of an early warning report containing additional information regarding the above matters. A copy of the Alert Report will be available on SEDAR under GMIN’s Issuer Profile at www.sedar.com and can be obtained on request from Eldorado by contacting Eldorado at the coordinates below. GMIN’s head office is located at 7900 W, boul. Taschereau, building D, office 210, Brossard, QC, J4X 1C2. Eldorado’s head office is located at 1188 – 550 Burrard Street, Bentall 5, Vancouver, BC, V6C 2B5.

About Eldorado Gold

Eldorado is a producer of gold and base metals with mining, development and exploration operations in Turkey, Canada, Greece and Romania. 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 stock trades on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).


Investor Relations

Lisa Wilkinson, Vice President, Investor Relations
604.757 2237 or 1.888.353.8166
[email protected]


Louise McMahon, Director of Communications and Public Affairs
604.616 2296 or 1.888.363.8166
[email protected]

Caution regarding forward-looking statements and information

Some 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”, “expect”, “is planned”, “budget”, “continue”, “planned”, “planned”. , “Believes”, “anticipates”, “intends”, “anticipates” or “believes” or the negative aspects thereof or variations of such words and expressions or statements that certain actions, events or results ” could “,” could “,” would be “,” could “or” will “be taken, occur or be achieved.

Forward-looking statements or information contained in this press release include, without limitation, statements or information regarding: the completion by TZ of commercial production and the receipt of any deferred consideration, GMIN’s ability to further TZ and to build a mine, including the cost and timing thereof, and the creation of future value for Eldorado through the equity stake in GMIN. 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 lead to the actual results, performance or achievements of the Company. Company significantly different from future results. , the performances or the achievements expressed or implied by these forward-looking statements or information.

We have made certain assumptions about forward-looking statements and information, including assumptions about: GMIN’s ability to advance TZ, including to achieve commercial production, and the timing thereof; and the price of GMIN shares; how the global economic and social impact of COVID-19 is being managed and the duration and extent of the COVID-19 pandemic; the timing and cost of construction and exploration; the future price of gold and other commodities; the world market for concentrates; change rate; anticipated costs, expenses and working capital requirements; the impact of acquisitions, disposals, suspensions or delays on our activities; and the ability to achieve our goals. In particular, unless otherwise stated, we have assumed the continuation of existing business operations on the same basis as at the time of this publication.

Although 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 can be difficult to predict and are beyond our control.

In addition, if one or more of the risks, uncertainties or other factors materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from those described in the forward-looking statements or information. These risks, uncertainties and other factors include, among others: GMIN’s inability to move TZ to commercial production; GMIN’s inability to pay the deferred consideration; GMIN’s inability to create future value for Eldorado; global epidemics of infectious diseases, including COVID-19; the timing and cost of construction, and associated benefits; recovery of gold and other metals; geopolitical and economic climate (global and local), risks associated with tenure and mining permits; the volatility of the prices of gold and other commodities; risks associated with information technology systems; the continued softening of the world market for concentrates; risks relating to potential and pending litigation and arbitration proceedings relating to our business, properties and operations; expected impact on reserves and book value; updating of reserve and resource models and mine life plans; risk of mining exploitation and development; financing risks; operational risks of foreign countries; sovereign investment risks; regulatory risks and responsibilities, including environmental regulatory restrictions and responsibilities; differences between actual and estimated production; mineral reserves and resources and metallurgical testing and recovery; additional financing needs; currency fluctuations; actions of communities and non-governmental organizations; speculative nature of gold exploration; dilution; the volatility of stock prices and the price of our common shares; competetion; loss of key employees; and the defective title of mining claims or properties, as well as the risk factors discussed in the sections entitled “Forward-looking Statements” and “Risk Factors in Our Business” in the Company’s most recent Annual Information Form and Form 40-F. . The reader is invited to carefully review the detailed discussion of risks in our most recent Annual Information Form filed on SEDAR and EDGAR under our company name, which discussion is incorporated by reference in this press release, for a better understanding of the risks and uncertainties. that affect the activities and operations of the company.

The inclusion of forward-looking statements and information is designed to help you understand management’s current views on our near and long term prospects, and 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. Therefore, you should not place undue reliance on any forward-looking statements or information contained in this document. Unless required by law, we do not plan to update forward-looking statements and information on an ongoing basis as conditions change.


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