Kumtor Gold Company (“KGC”) wishes to respond to recent media reports regarding the opening of a criminal investigation by the General Prosecutor’s Office in relation to the payment of a dividend by KGC.
As of today, the Company has not received any formal claim from the General Prosecutor’s Office and therefore cannot comment on the specific claims made by the General Prosecutor’s Office.
However, KGC wishes to clarify that the payment of a dividend to its only shareholder, Centerra Gold Inc., was carried out in the normal course of business and in compliance with all applicable legal requirements. Such dividends have been paid in the past as per normal corporate practice.
KGC has also received legal advice from its Kyrgyz lawyers which confirmed that the payment of the dividend did not violate the provisions of the Law of the Kyrgyz Republic on Joint Stock Companies.