Centerra Gold said it is aware of certain statements made by the prime minister of the Kyrgyz Republic at a meeting of the Kyrgyz Republic Parliament and to local media. The statements by the prime minister suggest that the restructuring of the Kumtor Project as a 50:50 joint venture between Centerra and Kyrgyzaltyn JSC, as previously announced by Centerra in its news release of December 24, 2013, would not be in the interest of the Kyrgyz Republic. The prime minister also reportedly said the nationalization of the Kumtor mine is not a viable alternative. Additionally, the prime minister is reported to have proposed changes or additions to the composition of Centerra’s board of directors.
The company said it will continue to engage constructively and in good faith with the government of the Kyrgyz Republic to resolve all outstanding matters affecting the Kumtor Project. There are no assurances that continued discussions between the Kyrgyz Government and Centerra will result in a mutually acceptable solution regarding the Kumtor Project, that any agreed upon proposal for restructuring would receive the necessary legal and regulatory approvals under Kyrgyz law and/or Canadian law and that the Kyrgyz Republic Government and/or Parliament will not take actions that are inconsistent with the government’s obligations under the Kumtor Project Agreements, including adopting a law “denouncing” or purporting to cancel or invalidate the Kumtor project agreements or laws enacted in relation thereto.