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Chaarat Gold Holdings proposes Centerra to sell Kumtor mine

Chaarat Gold Holdings Limited made a proposal in relation to the potential acquisition of Kumtor mine from Centerra Gold Inc. Announcement of the company says.

As noted, the acquisition would form part of a proposed three-way transaction between Chaarat, Centerra and the Kyrgyz state consortium, Kyrgyzaltyn OJSC. Chaarat has proposed that Chaarat and Kyrgyzaltyn will acquire Kumtor from Centerra, in an arrangement that will give Chaarat ownership of Kumtor’s common equity, as well as management and operation of the mine; while Kyrgyzaltyn will own Kumtor’s preferred equity and be entitled to 50% of the economic benefits of Kumtor.

As Chaarta says, the company strongly believes that the proposal is attractive for all stakeholders — including the people and government of the Kyrgyz Republic, Centerra and its shareholders, and Centerra’s own investors.

The company also intends, as part of this deal, to invest up to $600 million into two other projects in the country’s mining sector over the next five to seven years.

Chaarat stressed that in the medium term, the acquisition will serve as a platform for further acquisitions and generate significant and stable dividends. Chaarat is committed to the Kyrgyz Republic and wishes to enhance its contribution to the development of the mining industry in the country through the acquisition of Kumtor.