Centerra Gold Inc. on Monday confirmed that it is engaged in negotiations with representatives of the Kyrgyz Republic to resolve their disputes related to Centerra’s Kumtor mine and the seizure of control of the mine by the Kyrgyz government in May 2021. Statement of the company says.
Further to statements in the Kyrgyz media regarding the potential negotiated transfer of the Kumtor mine to the Kyrgyz Republic, Centerra expects that the framework for any resolution would involve the following principal terms:
- Centerra receiving the approximately 26.1 percent in Centerra common shares held by Kyrgyzaltyn JSC (an instrumentality of the Kyrgyz Republic). Upon receipt, Centerra would cancel the shares surrendered by Kyrgyzaltyn JSC;
- The Kyrgyz Republic receiving, and assuming all responsibility for, the company’s two Kyrgyz subsidiaries and the Kumtor mine;
- Payment by Centerra of a cash amount equal to the net amount of the three dividends paid by Centerra in 2021 that Kyrgyzaltyn JSC did not receive as a result of the seizure of the mine and certain other financial consideration associated with the settlement of inter-company balances between Centerra and its two Kyrgyz subsidiaries;
- The resignation from Centerra’s Board of Directors of Kyrgyzaltyn JSC’s two nominees;
- Full and final releases of all claims of the parties and termination of all legal proceedings involving the parties in all jurisdictions with no admissions of liability.
«Negotiations with representatives of the Kyrgyz Republic are ongoing, and there can be no assurance that any proposed resolution will be consummated or as to the final economic and other terms and conditions of any such resolution, if agreed. Any such resolution would need to be formalized in a definitive agreement and would be subject to compliance with all applicable legal and regulatory requirements and approvals, including any applicable independent valuation or shareholder or government approval requirements,» the statement says.
Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Turkey and other markets worldwide. Centerra operates two mines: the Mount Milligan Mine in British Columbia, Canada, and the Öksüt Mine in Turkey.
While the Company still owns the Kumtor mine in the Kyrgyz Republic, it is currently no longer under the company’s control.
The company also owns the pre-development stage Kemess Underground Project in British Columbia, Canada and owns and operates the Molybdenum Business Unit in the United States.
Centerra’s shares trade on the Toronto Stock Exchange (TSX) under the symbol CG and on the New York Stock Exchange (NYSE) under the symbol CGAU. The company is based in Toronto, Ontario, Canada.
The head of state Sadyr Japarov visited the Kumtor mine on January 2 and got acquainted with the activities of Kumtor Gold Company CJSC (KGC). He stated that progress has been achieved in the negotiation process with the Canadian company and discussion of an amicable agreement is nearing completion.