Centerra’s Kyrgyz agreements expire

Toronto-based Centerra Gold (CG-T) reports that a series of framework agreements entered into between the company, its parent company Cameco (CCO-T, CCJ-N) and the Kyrgyz government in August 2007, were not ratified by the Kyrgyz parliament within the required timeframe and have therefore expired.

Last August, Centerra avoided the nationalization of its flagship Kumtor gold mine in Kyrgyzstan, when the government instead struck a plan to nearly double its stake in Centerra to 29.3%, with Cameco’s stake in Centerra reduced to 30.2%.

However, with the deal now expiring (the deadline had already been extended from mid-February), Cameco continues to own 53% of Centerra while Kyrgyzaltyn owns 16%.

Cameco and Kyrgyzaltyn JSC, a joint stock company owned by the Kyrgyz government, are partners in the gold company that developed and began production at the Kumtor gold mine, which subsequently became part of Centerra.

Centerra says it will now resume an international arbitration process in accordance with its original investment agreement.

Meanwhile, gold production continues at Kumtor and Centerra says it has not been affected by the proceedings.