Centerra closes global arrangement agreement on Kumtor gold mine

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TORONTO — Centerra Gold Inc. announced Friday the closing of the global arrangement agreementwith Kyrgyzaltyn JSC and the Kyrgyz Republic on the sale of two wholly owned Kyrgyz subsidiaries, Kumtor Gold Co. CJSC and Kumtor Operating Co. CJSC, which operate the Kumtor Gold Mine.

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This comes just a few days after the Canadian gold miner said its shareholders approved the arrangement.

As a result of the completion of the transaction, Centerra has purchased and cancelled all of Kyrgyzaltyn’s 77.4 million Centerra common shares in exchange for, among other things, Centerra’s 100 per cent equity interest in its two Kyrgyz subsidiaries, and indirectly, the Kumtor mine.

In April, Centerra announced it had 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 Kyrgyz 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.

This report by The Canadian Press was first published July 29, 2022.

Companies in this story: (TSX:CG)