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First longstop date under strategic agreement on Kumtor extended to May 31

Centerra Gold Inc. has agreed with the government of the Kyrgyz Republic to extend the first longstop date under the Strategic Agreement for Environmental Protection and Investment Promotion previously entered into with the government of the Kyrgyz Republic on September 11, 2017. Kumtor Gold Company website reported.

As noted, the deadline for the implementation of the agreement with Centerra expired on April 20 and it was extended until May 31, 2018. The company expects to continue to work with the government of the Kyrgyz Republic to ensure the satisfaction of the remaining conditions precedent to completion of the strategic agreement, including the termination of certain legal proceedings and the granting of land use permits.

«Many of the conditions precedent have already been satisfied, including the granting of various permits and approvals for the Kumtor mine. In addition, the government of the Kyrgyz Republic has terminated all of the environmental claims previously brought by the Kyrgyz Republic State Inspectorate Office for Environmental and Technical Safety,» company’s statement says.

Centerra Gold Inc. says that there are no assurances that all of the conditions precedent to the completion of the settlement contained in the strategic agreement will be satisfied.

«The inability to successfully resolve all such matters, whether through the strategic agreement or otherwise could have a material adverse impact on the company’s future cash flows, earnings, results of operations and financial condition,» the company stressed.