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Government responds to Respublika–Ata Jurt on purchase of Thompson Creek

The government responded to Respublika — Ata Jurt faction on the purchase of Thompson Creek.

Today at the meeting of Respublika — Ata Jurt, a decision to take measures to cancel the transaction of Centerra Gold Inc. on the purchase of assets of Thompson Creek was voiced.

The Information Policy Department of the Government of the Kyrgyz Republic informs that since the first issue of shares of Centerra Gold in 2015 and to date, the position of Kyrgyzaltyn JSC remains unchanged. The government has always held the position that it is not advisable to acquire new assets through an additional share issue of Centerra Gold Inc.

«Members of the company’s Board of Directors, nominated by Kyrgyzaltyn OJSC, both in 2015 and in 2016 voted against an additional issue of shares, which may lead to a decrease in the share. However, in both cases, decisions on the issue and approval of the acquisition of a new asset were made by the decision of the majority of the members of the Board of Directors,» the report said.

According to the conclusion of the legal adviser Baker & McKenzie, the transaction was carried out in accordance with Canadian law, the requirements of the stock market, as well as under the agreements of 2009, adopted, as is known, in April 2009 by the government of that period, which included the current leader of Respublika — Ata Jurt faction as the first vice-premier of the Kyrgyz Republic.

The Board of Directors of Centerra Gold Inc., taking the decision to acquire a new asset, was guided by the fact that this would increase the value of the company’s shares, extend and expand production activities for gold mining, and increase the dividends paid to the shareholders of the company, including Kyrgyzaltyn JSC.