The value shares Centerra Gold Inc. on the Toronto Stock on 17.06.2021: 7.99 USD Value of Kyrgyzstan's shares in Centerra Gold Inc. : 618 440 110 USD

Centerra Enters into Non-Binding Memorandum of Understanding with the Kyrgyz Government

published: 10 September 2013

Centerra Gold Inc.Centerra Gold Inc. (TSX: CG) announces that it has entered into a non-binding memorandum of understanding (the “MOU”) with the Government of the Kyrgyz Republic in connection with a potential restructuring transaction under which Kyrgyzaltyn JSC (“Kyrgyzaltyn”) would exchange its 32.7% equity interest in Centerra for an interest in a joint venture company that would own the Kumtor Project. The MOU records the current status of negotiations that have been ongoing between management of Centerra and the Kyrgyz Republic advisory working group and provides, among other things, that the following principles will guide the potential restructuring transaction:

• Kyrgyzaltyn would receive a 50% interest in the joint venture company that would own the Kumtor Project in exchange for its 32.7% equity ownership in Centerra and US$100 million which will be provided to Centerra by way of an adjustment to joint venture distributions otherwise due to Kyrgyzaltyn.
• The adjustment to joint venture distributions otherwise due to Kyrgyzaltyn would occur over 10 years commencing in 2015 (in 2014 only interest would be paid) with an appropriate interest rate.
• All of the state agency environmental claims against the Kumtor Project would be resolved prior to the restructuring, by Centerra’s implementation of certain recommendations contained in a report provided to the Government working group by a third-party environmental consultant, and consistent with the laws and procedures of the Kyrgyz Republic and existing agreements between the parties.
• The agreements entered into between, among others, Centerra, Kyrgyzaltyn and Government of the Kyrgyz Republic in 2009 would remain in full force and effect, including the tax regime set out in such agreements.
• The Board of the joint venture company would be composed of an equal number of Centerra and Kyrgyzaltyn representatives. Major decisions of the joint-venture company would be subject to discussion and approval by the Board of the joint venture company.
• Centerra would remain the operator/manager of the Kumtor Project pursuant to an operating agreement which would contain terms and provisions which are typical of such agreements.The operating agreement would also include provisions for compensation for services provided by Centerra and Kyrgyzaltyn.
• Kyrgyzaltyn would receive six million warrants to acquire Centerra shares, with an exercise price of CDN$10, exercisable for two years.

The full text of the news release is available here.

Previous publicationKumtor Company Contributed 5,400 Books to Kyrgyz Educational Institutions Next publicationCenterra, Kyrgyz government sign pact for Kumtor mine
The value shares Centerra Gold Inc. on the Toronto Stock on 17.06.2021: 7.99 USD USD Value of Kyrgyzstan's shares in Centerra Gold Inc. : 618 440 110 USD
© 2011-2021 "Kumtor Gold Company." Copying of materials is possible only with written permission.