With the deal Centerra gets its hands on Mount Milligan, a large mine in British Columbia and reduces its reliance on Kumtor mine, in Kyrgyzstan, for cash flow.
Centerra Gold Mining News
Thompson Creek Metals (TSX:TCM) will soon start operating its Mount Milligan copper-gold mine in British Columbia under a new name.
Kumtor mine is the country's largest private sector employer and taxpayer and Centerra’s main gold producing mine.
The company is yet to receive an approval of its Kumtor’s 2016 mine plan, which it requires to continue operating the mine beyond June 30.
President Almazbek Atambayev has ordered state prosecutors to review the legality of agreements signed with the company in 2003-2004 and 2009.
Toronto-based Centerra says new criminal probe of managers at its giant gold mine bars expats from leaving the Central Asian country.
The company said the arbitration proceedings will be held at Stockholm and Sweden, and that they will be conducted under the UNCITRAL rules.
Fresh string of penalties and fees are one of the latest signs of renewed tensions between the Kyrgyzstan government and the Canadian miner.
Ruling is one of the latest signs of renewed tensions between the Kyrgyzstan government and the miner, which have been locked in a bitter dispute over profit sharing for years.
The company's gold production for the year is expected to be between 480,000 to 530,000 ounces.
They are looking into a dividend paid by Kumtor to Centerra in 2013, which the miner says complied with the country's laws and 2009 agreements governing the project.
OMAS will use the Facility to finance a substantial portion of the construction, development and operation of the Öksüt gold mine and its related infrastructure in the Kayseri region of central Turkey.
The Company has used a gold price of $1,200 per ounce as the basis for its reserve estimates.
The nation has struggled to manage its resources leading to disagreements and protests of mining operations.
After a five-year delay, the country’s parliament has finally approved Centerra’s plans to mine the Gatsuurt gold deposit.
Figures include 520,695 ounces of gold from the Kumtor mine, in the Kyrgyz Republic, and 16,226 ounces of gold from the Boroo mine, in Mongolia.
The incident is Centerra Gold's second brush with Kyrgyzstan authorities in recent months.
The country's government said the current agreement "ran counter to the country's national interests."
Construction of the gold mine, located in the south-central Kayseri province, should start in early 2016, followed by production by mid-2017.
Leonard Homeniuk has spent most of his time under house arrest since he was detained on July 27.
Bulgarian police arrested Len Homeniuk in July on an Interpol warrant over alleged corrupted deals in Kyrgyzstan.
Centerra Gold (TSX: CG) posted a profit in the second quarter, amid a sea of red for gold miners hurt by lower commodity prices.
The frozen payment corresponds to what the Kyrgyz Republic was told by an international arbitration court to give Stans for revoking its rare earth mining licenses in the country.
The extension is for the miner's permits for emissions into the atmosphere and waste disposal into the tailings pond.
Negotiations between the parties, however, are expected to continue over the summer.