Centerra Gold Provides Update on Negotiations with the Kyrgyz Government
March 28 2022 - 6:00AM
Centerra Gold Inc. (“Centerra” or “the Company”) (TSX: CG) (NYSE:
CGAU) issued the following statement today:
Centerra Gold Inc. notes that the Cabinet of
Ministers of the Kyrgyz Republic has approved a decision by the
Kyrgyz Government to conclude an agreement with Centerra related to
Centerra’s Kumtor Mine, as reported by Kyrgyz news media.
Negotiations with representatives of the Kyrgyz Government and
Kyrgyzaltyn JSC continue with a view to finalizing a transaction
that Centerra expects will include the principal terms outlined in
the Company’s press release dated January 3, 2022. As previously
disclosed, Centerra expects that the framework for any transaction
will include exchanging Centerra’s interest in the Kumtor Mine for,
among other things, Kyrgyzaltyn JSC’s Centerra common shares, as
well as full and final releases of all claims of the parties and
termination of all legal proceedings involving the parties in all
jurisdictions with no admissions of liability. Processes in respect
of the foregoing and other matters required in connection with an
acceptable transaction remain outstanding. Accordingly, there can
be no assurance that any proposed transaction will be agreed to or
consummated or as to the final economic and other terms and
conditions of any such transaction, if agreed.
Cautionary Note Regarding
Forward-Looking Information
Information contained in this document which are
not statements of historical facts may be “forward-looking
information” for the purposes of Canadian securities laws and
within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Such forward-looking information
involves risks, uncertainties and other factors that could cause
actual results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward looking
information. The words “believe”, “expect”, “anticipate”,
“contemplate”, “plan”, “potential”, “intends”, “continue”,
“budget”, “estimate”, “may”, “will”, “schedule”, “understand” and
similar expressions identify forward-looking information. These
forward-looking statements relate to, among other things: any
negotiations or transaction between Centerra, Kyrgyzaltyn JSC and
the Kyrgyz Republic, authorizations of the Kyrgyz Republic related
to any such transaction, and the potential terms and conditions of
any such transaction.
Forward-looking information is necessarily based
upon a number of estimates and assumptions that, while considered
reasonable by Centerra, are inherently subject to significant
political, business, technical, economic and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking information. Factors and assumptions that could
cause actual results or events to differ materially from current
expectations include, among other things: political changes in the
Kyrgyz Republic which result in an abandonment, delay, significant
changes or other disruption to the ongoing discussions between the
Company, the Kyrgyz Republic and Kyrgyzaltyn JSC, uncertainty
around the likelihood of a transaction resulting from negotiations
with representatives of the Kyrgyz Republic and Kyrgyzaltyn JSC,
and legal and regulatory requirements and approvals of the Kyrgyz
Government and certain of its instrumentalities in connection
therewith; the continued imposition by the Kyrgyz Government of
“external management” on Kumtor Gold Company CJSC (“KGC”) or the
prolongation of such “external management”; the inability of the
“external management” to obtain equipment, spare parts, consumables
or other supplies; the Kyrgyz Government taking further steps to
nationalize or expropriate the Kumtor Mine, and/or utilizing the
purported environmental and tax claims being asserted against KGC
to strip KGC of its assets; the impact of changes in, or to the
more aggressive enforcement of, laws, regulations and government
practices in the Kyrgyz Republic, including unjustified civil or
criminal action against the Company, its affiliates or its current
or former personnel, including the interaction of claims of harm to
the environment or human health with new Kyrgyz Republic
legislation; the uncertainty of potential outcomes in the
previously disclosed arbitration process brought by the Company
against the Kyrgyz Republic and Kyrgyzaltyn JSC; the inability of
the Company and its subsidiaries to collect on or enforce any
favorable arbitral and/or court judgement awarded against the
Kyrgyz Republic or Kyrgyzaltyn JSC; the presence of a significant
shareholder, Kyrgyzaltyn JSC, that is a state-owned company of the
Kyrgyz Republic; and other actions which could be taken by or
against the Company in response to the ongoing situation involving
the Kumtor Mine. For additional risk factors, please see section
titled “Risks Factors” in the Company’s most recently filed Annual
Information Form available on SEDAR at www.sedar.com and EDGAR
www.sec.gov/edgar.
There can be no assurances that forward-looking
information and statements will prove to be accurate, as many
factors and future events, both known and unknown could cause
actual results, performance or achievements to vary or differ
materially from the results, performance or achievements that are
or may be expressed or implied by such forward-looking statements
contained herein or incorporated by reference. Accordingly, all
such factors should be considered carefully when making decisions
with respect to Centerra, and prospective investors should not
place undue reliance on forward looking information.
Forward-looking information is as of March 28, 2022. Centerra
assumes no obligation to update or revise forward-looking
information to reflect changes in assumptions, changes in
circumstances or any other events affecting such forward-looking
information, except as required by applicable law.
About Centerra Gold
Centerra Gold Inc. is a Canadian-based gold
mining company focused on operating, developing, exploring and
acquiring gold and copper properties in North America, Turkey, and
other markets worldwide. Centerra operates two mines: the Mount
Milligan Mine in British Columbia, Canada, and the Öksüt Mine in
Turkey. While the Company still owns the Kumtor Mine in the Kyrgyz
Republic, it is currently no longer under the Company’s control.
The Company also owns the Goldfield District Project in Nevada,
United States, the Kemess Underground Project in British Columbia,
Canada, and owns and operates the Molybdenum Business Unit in the
United States. Centerra's shares trade on the Toronto Stock
Exchange (“TSX”) under the symbol CG and on the New York Stock
Exchange (“NYSE”) under the symbol CGAU. The Company is based in
Toronto, Ontario, Canada.
For more information:Toby Caron Treasurer and
Director, Investor Relations (416) 204-1694
toby.caron@centerragold.com
Shae FrosstManager, Investor Relations(416)
204-2159shae.frosst@centerragold.com
Additional information on Centerra is available on the
Company’s web site at www.centerragold.com and at
SEDAR at www.sedar.com and EDGAR at
www.sec.gov/edgar.
A PDF accompanying this announcement is available
at http://ml.globenewswire.com/Resource/Download/78727c6f-c93c-43ec-ba69-77d935e46736
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