Media reports in the Kyrgyz Republic indicate the Kyrgyz Parliament has passed a decree stating, among other things, that Parliament has rejected the non-binding memorandum of understanding (MoU) signed between the Government of the Kyrgyz Republic, Kyrgyzaltyn JSC and Centerra Gold on September 9. Parliament has instructed the government to continue negotiations with Centerra with a view to increase the Kyrgyz Republic shareholding in a joint venture project to 67%, and in the event of failure to reach a mutually acceptable solution, to initiate the denouncement of the current project agreements governing the Kumtor project. A new deadline of December 23 has been set by the Parliament for the parties to conclude these discussions.
Discussions are ongoing, according to the company, and any definitive agreement would be subject to compliance with all applicable legal and regulatory requirements and approvals, including any independent valuation and minority shareholder approval requirements.
Centerra is a largest Western-based gold producer operating in Central Asia. The company operates the Kumtor mine in the Kyrgyz Republic.
