KYRGYZSTAN – Centerra Gold of Toronto is working on a deal with the government of Kyrgyzstan concerning the Kumtor gold mine in that country. If completed as planned, Kyrgyzaltyn JSC (representing the government) would exchange its 32.7% equity interest in Centerra for a 50% interest in a new joint venture company that will own the mine.
The board of the joint venture will consist of equal numbers of nominees from Centerra and Kyrgyzaltyn, and Centerra will retain its responsibilities as operator of the project. The existing tax regime will not change. However, before the joint venture is formed, all of the state agency environmental claims against the Kumtor mine must be resolved. If the deal goes through as planned, Kyrgysaltyn will pay Centerra $100 million over 10 years.
More information is available at CenterraGold.com.