Centerra Gold Announces Completion of Global Arrangement Agreement with Kyrgyzaltyn and the Government of the Kyrgyz Republic
July 29 2022 - 9:19AM
Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG) (NYSE:
CGAU) today announced the closing of the previously announced
global arrangement agreement (the “Arrangement Agreement”) with
Kyrgyzaltyn JSC (“Kyrgyzaltyn”) and the Government of the Kyrgyz
Republic relating to the disposition of Centerra’s ownership of the
Kumtor mine and investment in the Kyrgyz Republic and the
termination of Kyrgyzaltyn’s involvement with the Company (the
“Transaction”).
As a result of the completion of the
Transaction, Centerra has purchased and cancelled all of
Kyrgyzaltyn’s 77,401,766 Centerra common shares in exchange for,
among other things, Centerra’s 100% equity interest in its two
Kyrgyz subsidiaries, and indirectly, the Kumtor mine (with
Kyrgyzaltyn and the Kyrgyz Republic assuming all responsibility for
the Kumtor mine, including all reclamation and environmental
obligations), and aggregate cash payments of approximately US$85
million (a portion of which was withheld on account of Canadian
withholding taxes payable by Kyrgyzaltyn). As contemplated by the
Arrangement Agreement, the parties have, among other things,
provided full and final releases of all claims related to the
Kumtor mine. In addition, Kyrgyzaltyn’s two director nominees,
Dushen Kasenov and Nurlan Kyshtobaev, have resigned from Centerra’s
Board of Directors, and the Restated Shareholders Agreement
between, among others, Centerra and Kyrgyzaltyn has terminated.
As a result of the purchase and cancellation of
a total of 77,401,766 Centerra common shares previously held by
Kyrgyzaltyn pursuant to the Transaction, the Company has
220,083,541 Centerra common shares outstanding as at the date
hereof.
Further details on the terms of the Arrangement
Agreement and the Transaction can be found in Centerra’s management
information circular in respect of the special meeting of Centerra
shareholders held on July 25, 2022 to approve the Transaction, a
copy of which is available on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov/edgar.
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. 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 website at www.centerragold.com, on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov/edgar.
PDF
available: http://ml.globenewswire.com/Resource/Download/8bb82c42-60cd-47ba-b3da-a96ed7be00df
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