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April 24, 2009
Centerra Gold Reaches Agreement With the Kyrgyz Government and Cameco Regarding the Kumtor Project
TORONTO, ONTARIO--(Marketwire - April 24, 2009) -
(All figures are in United States dollars)
Centerra Gold Inc. ("Centerra" or the "Company") (TSX:CG) announced today that the Company has reached an agreement (the "Agreement") with the Government of the Kyrgyz Republic (the "Government") and Cameco Corporation ("Cameco") that resolves all of the existing disputes between Centerra and the Government with respect to the Kumtor Project. The Agreement provides for the Government's full commitment to and support for Centerra's continuing long-term development of the Kumtor Project and the Government has agreed not to take any action that deprives Centerra or its affiliates of any of their rights in respect of the Kumtor Project. The Government has advised Centerra that it intends to present the Agreement and draft legislation authorizing the implementation of all of its terms for Parliamentary approval next week and to make a concerted effort to obtain such approval.
On June 2, 2008, the Company reported that the previously announced framework agreements entered into between the Company, Cameco and the Government on August 30, 2007 had not been ratified by the Parliament of the Kyrgyz Republic within the time frame agreed by the parties and had therefore expired. Subsequently, the parties resumed their discussions and negotiations and the current Agreement reflects the outcome of those negotiations.
"This Agreement provides a stable and economically attractive business and operational environment for Centerra and the Kumtor Project. Kumtor, producing approximately 600,000 ounces of gold annually has operated uninterrupted since 1997. As one of the largest gold mines in the world, its 2,300 employees demonstrate the highest levels of productivity, have an outstanding safety record and adhere to the strictest environmental standards. Centerra and the Kyrgyz Republic can be very proud of this operation. We have always worked together for the development of the Kumtor Project and the Government's increased shareholding in Centerra further aligns our interests. Furthermore, this agreement demonstrates the Government's commitment to Centerra and secures the Company's long-term presence in the country," commented Stephen Lang, Centerra President and Chief Executive Officer.
Highlights of the New Agreement
- Provides business certainty for future mining operations at the Kumtor