BISHKEK (TCA) — Centerra Gold Inc., the Canadian-based gold mining company which operates the Kumtor gold mine in Kyrgyzstan, on April 20 announced that it has agreed with the Government of the Kyrgyz Republic to extend the First Longstop Date under the Strategic Agreement for Environmental Protection and Investment Promotion previously entered into with the Government of the Kyrgyz Republic on September 11, 2017. The First Longstop Date is the date by which all conditions precedent to the completion of the Strategic Agreement are required to be satisfied and it has been extended by agreement of the parties from April 20, 2018 to May 31, 2018.
The Company notes that the government of Prime Minister Sapar Isakov was dismissed by the President of the Kyrgyz Republic on April 19 following a vote of no confidence in the Kyrgyz Republic Parliament.
Centerra said it expects to continue to work with the new Government of the Kyrgyz Republic to ensure the satisfaction of the remaining conditions precedent to completion of the Strategic Agreement, including the termination of certain legal proceedings and the granting of land use permits. The Company notes that many of the conditions precedent have already been satisfied, including the granting of various permits and approvals for the Kumtor Mine. In addition, the Government of the Kyrgyz Republic has terminated all of the environmental claims previously brought by the Kyrgyz Republic State Inspectorate Office for Environmental and Technical Safety (SIETS).
While the Strategic Agreement provides a pathway for the resolution of all outstanding matters affecting the Kumtor Project, there are no assurances that all of the conditions precedent to the completion of the settlement contained in the Strategic Agreement will be satisfied, Centerra said. The inability to successfully resolve all such matters, whether through the Strategic Agreement or otherwise could have a material adverse impact on the Company’s future cash flows, earnings, results of operations and financial condition, it said.
Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide. Centerra operates two flagship assets, the Kumtor Mine in the Kyrgyz Republic and the Mount Milligan Mine in British Columbia, Canada and is the largest Western-based gold producer in Central Asia. Centerra’s shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is based in Toronto, Ontario, Canada.