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Kyrgyz government, Centerra considering Kumtor mine JV

4th June 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canadian miner Centerra Gold on Tuesday confirmed that it was in talks with the Kyrgyz government about forming a joint venture (JV) company that would own the Kumtor mine.

The parties were currently considering a potential 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 the mine.

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

Trade in Centerra’s shares was halted earlier in the day pending the news release, and closed up 2.16% at C$4.26 a share.

Edited by Creamer Media Reporter

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