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Kumtor JV negotiations continuing – Centerra

23rd August 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Canadian miner Centerra Gold said on Friday that it remained in negotiations with Kyrgyz Republic officials regarding a joint venture (JV) for the Kumtor project.

The parties are looking at a restructuring transaction under which Kyrgyzaltyn JSC would exchange its 32.7% equity interest in Centerra for an interest of equivalent value in a JV company that would own Kumtor.

Centerra reported that it had made progress in the discussions, but said that it had not yet reached a final agreement with the government.

The Kyrgyz Parliament had decreed that the Kumtor project agreements, which were signed in 2009, should be revised, while Centerra was also facing multimillion-dollar environmental claims.

“Centerra expects to continue discussions with the government with the objective of resolving matters through constructive dialogue. However, there can be no assurance that any transaction will be consummated or that the company will be able to successfully resolve any of the matters currently affecting the Kumtor project,” the Toronto-headquartered mining firm said.

Centerra is expecting gold production of between 550 000 oz and 600 000 oz from Kumtor this year.

Edited by Creamer Media Reporter

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