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To: LoneClone who wrote (36052)	4/24/2009 8:33:45 PM
From: LoneClone	Read Replies (1) \| Respond to of 196200

Centerra Gold 'resolves all of the existing disputes' over Kyrgyzstan mine Fri Apr 24, 1:33 PM The Canadian Press ca.news.finance.yahoo.com By The Canadian Press TORONTO - Centerra Gold Inc. (TSX: CG.TO) has a new agreement with the government of Kyrgyzstan, which will get one-third ownership in the company in return for a new tax regime and additional land rights. The agreement, if it gets approval from the Kyrgyz parliament and meets other conditions, will resolve years of uncertainty over ownership of the Kumtor gold mine. Centerra's shares gained more than 15 per cent on the Toronto Stock Exchange, while its majority owner - Saskatoon-based Cameco Corp. (TSX: CCO.TO) - rose nearly six per cent Friday. Toronto-headquartered Centerra said its accord with the government and Cameco "resolves all of the existing disputes," and "provides for the government's full commitment to and support for Centerra's continuing long-term development of the Kumtor project." It said the government has pledged to take no action that deprives Centerra of any rights, and intends to present the agreement and draft legislation to the country's parliament next week. Centerra said the agreement "provides a stable and economically attractive business and operational environment" for Kumtor, which has operated since 1997, currently employing 2,300 people and producing 600,000 ounces of gold annually. Centerra, spun off in 2004 by Cameco, has been in suspense since last June, when a previous agreement collapsed after failing to win parliamentary approval. Under the new arrangement, the government will take 18.2 million new shares issued by Centerra and up to 25.3 million shares transferred from Cameco. This would leave the Kyrgyzstani government owning up to 33 per cent of Centerra, Cameco holding 37.8 per cent and other shareholders with 29.2 per cent. Cameco said in a separate statement that the number of common shares to be transferred to the government will depend upon the value received by Cameco on any sale of common shares. "The agreement is expected to further align the parties' business interests and provide additional certainty for continuing operations and future development of the Kumtor project," Cameco said. Kyrgyzaltyn JSC, the government-owned company that will hold the Centerra shares, said it may, from time to time, acquire additional shares or sell some of its holdings. Centerra also will make a payment to the government of US$22.4 million, mostly to cover taxes retroactive to the start of 2008 under a revised tax regime. Kumtor will be subject to "a simplified new tax rate" of 14 per cent of gross revenue. This replaces a previous tax of 10 per cent of taxable income plus assorted levies amounting to 7.3 per cent of revenue and two to four per cent of taxable income, in addition to withholding taxes and duties. There also will be a new annual payment of four per cent of gross revenue, against which all capital and exploration expenditures in the Kyrgyz Republic will be credited. Centerra said the agreement expands its concession area to include its current exploration and development licence, and the government "will also support further and additional exploration activity." The arrangement, which would terminate all court proceedings, is subject to approval by the Centerra and Cameco boards and - crucially - the Kyrgyzstani parliament.