CGAU - Centerra Gold Kyrgyzstan end Kumtor gold mine dispute

Kyrgyzstan's government has reached an out-of-court settlement with Centerra Gold (NYSE:CGAU) over ownership of the giant Kumtor gold mine, Reuters reports. Kyrgyz President Sadyr Japarov is scheduled to say in a televised announcement that state-owned gold miner Kyrgyzaltyn will own Kumtor and retain income it earned from the mine since it was seized in May, according to an advanced release of the agreement seen by Reuters. In exchange, Kyrgyzaltyn reportedly will return the 26% stake it holds in Centerra, which will make a $50M repayment of an outstanding loan to Kumtor and preserve and protect the country's natural resources. Centerra and Kyrgyzstan, which have long disputed how to share profit from the mine, also agreed to end all legal proceedings against each other with no admissions of liability. Kumtor is the largest of Centerra's gold mines, contributing more than half of the company's total production.

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Centerra Gold, Kyrgyzstan end Kumtor gold mine dispute