On July 29, Centerra Gold Inc. announced that it had concluded a global agreement with Kyrgyzaltyn JSC and the Cabinet of Ministers of the Kyrgyz Republic on the sale of two subsidiaries in the Central Asian state – Kumtor Gold Company CJSC and Kumtor Operating Company CJSC that operate on the Kumtor mine, the press office of the President of the Kyrgyz Republic reported.
The agreement was concluded a few days after the Canadian gold mining company said its shareholders had approved the deal.
The deal enabled Centerra Gold Inc. to receive and redeem 77.4 million in ordinary shares of Kyrgyzaltyn in exchange for, among other things, a 100 percent participation interest in Centerra Gold Inc. in its two subsidiaries in Kyrgyzstan and, indirectly, the Kumtor mine.
In April, the Canadian company announced it had agreed to sell its stake in the Kyrgyz Republic and leave the country after settling a long-standing dispute over one of the largest gold mines in the Central Asia state.
The Government of Kyrgyzstan took over the Kumtor mine in May 2021, citing environmental and safety concerns, though the country has long accused the company of not paying taxes. Centerra Gold Inc. denied these accusations.
