Centerra Gold Confirmed Talks with Kyrgyzstan on Potential Kumtor Restart

SEATTLE (Scrap Monster): Centerra Gold Inc. confirmed that it is in talks with representatives of the Krygyzstan government to resolve the disputes related to Kumtor gold mine and its seizure by the government in May last year.

Centerra Gold hopes to receive approximately 26.1% in Centerra common shares held by Kyrgyzaltyn JSC. Upon receipt of the above, the company would cancel the shares surrendered by Kyrgyzaltyn JSC. It also wants the state to assume full responsibility for the company’s two Kyrgyz subsidiaries as well as the Kumtor mine.

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The other conditions laid out in the framework include payment by Centerra of a cash amount equal to the net amount of the three dividends paid by Centerra in 2021 that Kyrgyzaltyn JSC did not receive. It also wants resignation of Kyrgyzaltyn JSC’s two nominees from Centerra’s Board of Directors.

Subject to the above terms, Centerra calls for full and final releases of all claims of the parties and termination of all legal proceedings involving the parties in all jurisdictions with no admissions of liability.

If agreed, any such resolution would need to be formalized in the form of a definitive agreement and would be subject to all applicable legal and regulatory requirements and approvals.