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Centerra Gold announces completion of agreement with Government of Kyrgyzstan

Centerra Gold Inc. announced the closing of the previously announced global arrangement agreement with Kyrgyzaltyn JSC and the Government of the Kyrgyz Republic relating to the disposition of Centerra’s ownership of the Kumtor mine and investment in the Kyrgyz Republic, and the termination of Kyrgyzaltyn’s involvement with the company. Official statement of Centerra Gold says.

As a result of the completion of the transaction, Centerra has purchased and cancelled all of Kyrgyzaltyn’s 77,401,766 Centerra common shares in exchange for, among other things, Centerra’s 100 percent equity interest in its two Kyrgyz subsidiaries, and indirectly, the Kumtor mine (with Kyrgyzaltyn and the Kyrgyz Republic assuming all responsibility for the Kumtor mine, including all reclamation and environmental obligations), and aggregate cash payments of approximately $85 million (a portion of which was withheld on account of Canadian withholding taxes payable by Kyrgyzaltyn).

As contemplated by the agreement, the parties have, among other things, provided full and final releases of all claims related to the Kumtor mine.

In addition, Kyrgyzaltyn’s two director nominees, Dushen Kasenov and Nurlan Kyshtobaev, have resigned from Centerra’s Board of Directors, and the Restated Shareholders Agreement between, among others, Centerra and Kyrgyzaltyn has terminated.

«As a result of the purchase and cancellation of a total of 77,401,766 Centerra common shares previously held by Kyrgyzaltyn pursuant to the transaction, the company has 220,083,541 Centerra common shares outstanding as at the date hereof,» the statement says.

Press service of the President of the Kyrgyz Republic on Friday reported about procedure of exchange of documents confirming the process of transfer of Kumtor gold mine into the ownership of Kyrgyzstan that took place at the Embassy of Kyrgyzstan in the UK.