Canadian gold miner Centerra announces deal to exit Kyrgyz Republic, sell Kumtor mine
ca.finance.yahoo.com
Mon, April 4, 2022, 6:59 a.m.·1 min read
TORONTO — Canadian miner Centerra Gold Inc. says it has agreed to sell its business interests in the Kyrgyz Republic and exit the country, settling a long-simmering dispute over one of the biggest gold mines in Central Asia.
The Toronto-based company says the sale to Kyrgyzaltyn JSC includes Centerra’s two wholly-owned Kyrgyz subsidiaries, Kumtor Gold Co. CJSC and Kumtor Operating Co. CJSC, which operate the Kumtor Gold Mine.
In exchange, Kyrgyzaltyn will give up its 26 per cent stake in Centerra and its 77.4 million Centerra common shares for cancellation, worth roughly $972 million.
The Kyrgyzstani government took over the Kumtor mine in May 2021 citing environmental and safety concerns, though the country has also long accused the company of not paying enough taxes.
Centerra has denied those allegations.
The company says the agreement, which requires the support of shareholders, is conditional on the release of all claims and the termination of legal proceedings related to the mine.
This report by The Canadian Press was first published April 4, 2022.
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