London-listed Chaarat is no longer pursuing any transactions to buy the Kumtor mine from Centerra Gold, after the Canadian firm last month rebuffed a second proposal from the company.
Chaarat on Wednesday revealed that it had made an all-cash offer to buy Centerra in September, after its April proposal involving a three-way transaction between the companies and the Kyrgyz State consortium, Kyrgyzaltyn, failed to impress Centerra.
According to Chaarat, it had offered to buy Centerra at a premium of at least 35% above its prevailing share price of C$5.48 a share at the time of the proposal.
The company’s stock closed at C$4.95 a share on Tuesday.
Chaarat said that the ultimate objective of the proposal was to combine the operations of Chaarat and the Kumtor mine.
“Chaarat was hoping to reach an amicable and mutually beneficial agreement with Centerra on either of its two proposals, which would have created meaningful value for Centerra's investors and stakeholders, including the Kyrgyz Republic. However, Centerra's board and management have continually declined to engage with Chaarat,” the company said in a statement.
Owing to the “unwillingness” of Centerra to engage with Chaarat, the company said that it was no longer pursuing either transaction.
The news comes as Chaarat, which is advancing a strategy of buying mines to create a meaningful gold player in the Commonwealth of Independent States, on Tuesday announced the $55-million acquisition of the Kapan polymetallic mine, in Armenia, from Polymetal International.
The company has also gained exclusive rights to consider the Russian miner’s other interests in Armenia.
Centerra on Wednesday published its third-quarter results and made no mention of Chaarat or any of the proposed transactions.