published: 24 October 2013
Toronto, Canada, October 23, 2013: Centerra Gold Inc. (TSX: CG) reports it is aware of news reports in the Kyrgyz Republic that indicate the Kyrgyz Parliament has passed a decree indicating, among other things, that Parliament has rejected the non-binding memorandum of understanding signed between the Government of the Kyrgyz Republic, Kyrgyzaltyn JSC and Centerra on September 9, 2013. Reports indicate that Parliament has instructed the Government to continue negotiations with Centerra with a view to increasing the Kyrgyz Republic shareholding in a joint venture project to 67% and in the event of failure to reach a mutually acceptable solution, to initiate the denouncement of the current project agreements governing the Kumtor project. The Company understands that a new deadline of December 23, 2013 has been set by Parliament for the parties to conclude these discussions.
Centerra further understands that the Government of the Kyrgyz Republic continues to support the previously negotiated Memorandum of Understanding. Centerra expects to continue discussions with the Government with the objective of resolving matters through constructive dialogue however maintains that any agreement to resolve matters must be fair to all of Centerra’s shareholders.
Discussions are on-going and any definitive agreement would be subject to compliance with all applicable legal and regulatory requirements and approvals, including any independent valuation and minority shareholder approval requirements. There can be no assurance that any transaction will be consummated or that the Company will be able to successfully resolve any of the matters currently affecting the Kumtor Project. Further updates and information will only be provided if and when appropriate.
The full text of the news release is available here.