TORONTO _
Centerra Gold Inc. (
TSX: T.CG,
Stock Forum) fluctuated Tuesday in the first trading since the Toronto-based company announced a potential resolution of its difficulties with the Kyrgyz government.
A non-binding memorandum calls for the state-owned Kyrgyzaltyn JSC to exchange its 32.7 per cent equity interest in Centerra for a 50 per cent interest in a joint venture company that would own the Kumtor gold project,
Centerra said in a press release.
Centerra would remain operator of the project and get half the seats on the joint venture's board.
The Canadian mining company would also receive US$100 million in future cash payments.
Centerra's shares jumped to $6.67 in early trading on the Toronto Stock Exchange, a rare bright spot in the Canadian gold sector. But the stock later slipped back to $6.45, down 0.31% from the open.