(MENAFN- ProactiveInvestors) Shares of (TSE:ELD) crumbled Monday after announcing that it has received notice from the Greece government revoking the approval necessary to complete the final construction of the processing plant at its Skouries project.
The company's Greek subsidiary received the formal notice from Greece's Ministry of Productive Reconstruction Energy and Environment Eldorado said.
It also noted that the notice indicates the Ministry may reverse its decision once an internal review process is completed. Timing on the completion of this process was not stipulated by the government.
Eldorado said the Ministry's decision has "no legal basis" and it will act to protect its rights if necessary. Site activities continue unabated at the project.
"We have 2000 people working directly for us and our contractors in Greece and are making a significant contribution to the economy of the country during challenging times" reminded chief executive officer Paul Wright.
"Since 2012 we have invested in excess of US$450 million on the construction and development of two mines in Greece - Skouries and Olympias. Once these two mines reach commercial production Hellas Gold [Eldorado's Greece subsidiary] will become one of Greece's top exporters."
The company also highlighted its commitment to invest US$310 million on the development of Skouries and Olympias in 2015 which it says will generate additional jobs and taxes for Greece.
"However the recent decision of the Ministry of Energy - if not reversed in a timely manner - may force Eldorado to reconsider its investment plans for Greece" cautioned Wright.
"Eldorado Hellas Gold its Greek employees labor unions and pro-mining stakeholders from the Municipality of Aristotle in Halkidiki look forward to engaging in a constructive dialogue with the new Greek Government."
Shares of Eldorado dropped 5 percent to C$6.85 in Toronto on Monday afternoon.
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