TORONTO — Centerra Gold Inc. (TSX:CG) has reached a settlement in its long-running dispute with the government of the Kyrgyz Republic.
The company's Kumtor gold mine has been the focus of a number of fights between Centerra and the central Asian country.
The agreement will lift restrictions the ability of Centerra's Kyrgyz subsidiary Kumtor Gold Co. to transfer cash to Centerra and allow the free movement of its employees.
Under the deal, Kumtor Gold has agreed to make a one-time payment of US$50 million and annual payments of US$2.7 million to a new, government-administered nature development fund.
The company will also make payments to a new cancer care support fund, including a one-time payment of US$7 million and a second payment of US$3 million within 12 months of closing.
In addition, Kumtor Gold will accelerate its annual payments to a reclamation trust fund in the amount of US$6 million a year until the total reaches the estimated reclamation cost for the Kumtor Project.
The Canadian Press
