Blueprint
ELDORADO GOLD CORPORATION
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1. Name
and Address of Company
Eldorado Gold
Corporation (“Eldorado” or the
“Company”)
Suite
1188 – Bentall 5
550
Burrard Street
Vancouver, British
Columbia V6C 2B5
Item 2.
Date of Material Change
September 26,
2019
A news
release was disseminated via Global Newswire and filed on SEDAR on
September 26, 2019.
Item 4.
Summary of Material Change
On
September 26, 2019 the Company announced that it has established an
at-the-market equity program (the “ATM Program”). The
ATM Program will allow the Company to issue up to US$125 million
worth of common shares from treasury (“Common Shares”)
to the public from time to time at prevailing market prices through
the Toronto Stock Exchange, the New York Stock Exchange or any
other marketplace on which the Common Shares are listed, quoted or
otherwise trade. The volume and timing of distributions under the
ATM Program, if any, will be determined at the Company’s sole
discretion, subject to applicable regulatory
limitations.
Item 5.
Full Description of Material Change
On
September 26, 2019 the Company announced that it has established
the ATM Program. The ATM Program will allow the Company to issue up
to US$125 million worth of Common Shares to the public from time to
time at prevailing market prices through the Toronto Stock
Exchange, the New York Stock Exchange or any other marketplace on
which the Common Shares are listed, quoted or otherwise trade. The
volume and timing of distributions under the ATM Program, if any,
will be determined at the Company’s sole discretion, subject
to applicable regulatory limitations.
Sales
of Common Shares through the ATM Program will be made pursuant to
the terms of an equity distribution agreement dated September 26,
2019 entered into among the Company, BMO Nesbitt Burns Inc., as
Canadian agent, and BMO Capital Markets Corp., as U.S. agent. The
ATM Program will be effective until September 26, 2021, unless all
Common Shares available for issue under the ATM Program have been
issued or the ATM Program is terminated prior to such date by the
Company or the agents.
Eldorado intends to
use the net proceeds from the ATM Program, if any, for
funding:
●
Potential capital
investments at Kişladağ for waste stripping and heap
leach pad expansion, subject to ongoing metallurgical heap leach
testwork;
●
Potential capital
investments at Lamaque for expansion from 1,800 tonnes per day
(“tpd”) to 2,500 tpd;
●
Potential
engineering and permitting expenses and minor enabling construction
to support the re-start of construction at Skouries;
●
Potential
engineering and Environmental Impact Assessment permitting expenses
at Perama Hill;
●
Potential
engineering and permitting expenses to expand Olympias from 1,200
tpd to 1,900 tpd;
●
Repayment of
indebtedness; and/or
●
General corporate
purposes
The
Company has filed a prospectus supplement dated September 26, 2019
(“Prospectus Supplement”) to its base shelf prospectus
dated August 26, 2019 (“Base Shelf Prospectus”) with
each of the securities regulatory authorities in all provinces of
Canada, and has filed a registration statement on Form F-10
(including a prospectus) and a prospectus supplement with the
United States Securities and Exchange Commission (the
“SEC”) for the ATM Program. Before you invest, you
should read the Prospectus Supplement, the Company’s Base
Shelf Prospectus, the registration statement, and all other
documents the Company has filed with the Canadian securities
regulatory authorities and the SEC for more complete information
about the Company and the ATM Program. These documents may be
downloaded from SEDAR at www.sedar.com or by visiting EDGAR on the
SEC website at www.sec.gov. Alternatively, any agent participating
in the ATM Program will arrange to send you these documents if you
request it by contacting, (i) in Canada: BMO Nesbitt Burns Inc.,
attn: Brampton Distribution Centre C/O The DATA Group of Companies,
9195 Torbram Road, Brampton, Ontario, L6S 6H2, by email at
torbramwarehouse@datagroup.ca or by phone at 905-791-3151 Ext. 4312
(ii) in the U.S., BMO Capital Markets Corp., attn: Equity Syndicate
Department, 3 Times Square, 25th Floor, New York, NY, 10036, by
email at bmoprospectus@bmo.com or by phone at
1-800-414-3627.
This
report does not constitute an offer to sell or the solicitation of
an offer to buy the Common Shares, nor shall there be any sale of
these securities in any jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such
jurisdiction.
Cautionary
Note about Forward-looking Statements and Information
Certain
of the statements made and information provided in this report 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 report include, but are
not limited to, statements or information with respect to: sales of
any Common Shares pursuant to the ATM Program, including the price,
volume and timing of any distributions, use of the net proceeds of
any sales of Common Shares pursuant to the ATM Program, including
any capital investment at Kişladağ or Lamaque,
engineering, permitting and construction at Skouries, Perama Hill
and Olympias, and repayment of indebtedness.
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 assumptions about the price of the Common
Shares, metallurgical recoveries 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, 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 report. 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
following: the price of the Common Shares; results of further
testwork at Kişladağ, recoveries of gold and other
metals; 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; additional funding requirements; currency fluctuations;
community and non-governmental organization actions; speculative
nature of gold exploration; dilution; 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 and “Forward-Looking Statements” and
"Risk factors" in Prospectus Supplement and the Base Shelf
Prospectus. The reader is directed to carefully review the detailed
risk discussion in our most recent Annual Information Form, the
Prospectus Supplement and the Base Shelf Prospectus filed on SEDAR
and EDGAR under our Company name, which discussion is incorporated
by reference in this report, 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.
Item 6.
Reliance on 7.1(2) of National Instrument 51-102
Not
applicable.
Item 7.
Omitted Information
Not
applicable.
Item 8.
Executive Officer
Name of Executive
Officer:
Tim
Garvin
Executive
Vice President and General Counsel
Telephone number:
(604) 601
6692
October
1, 2019