A gold development company, with a flagship operation in Central Asia, has been told that it cannot buy the largest gold mine in Kryrgyztan.
Chaarat Gold, listed on the London stock exchange, is believed to have offered to purchase the Kumtor gold mine from Centerra Gold.
But in a statement released from the Canadian Centerra, the company has stated that it has “no interest in the transaction proposed by Chaarat.”
The Kumtor Mine is 100% owned by Centerra through its subsidiary, Kumtor Gold. Located in in the Kyrgyz Republic, it is the largest gold mine operated in Central Asia by a Western-based company.
Throughout the period of 1997 – 2015, the mine produced more than 10.4 million ounces of gold.
According to Reuters, the proposal would see Chaarat and Kyrgyzaltyn acquire Kumtor from Centerra.
Chaarat would then operate the mine, while Kyrgyzaltyn would own Kumtor’s preferred equity and be entitled to “50 percent of the economic benefits” of Kumtor.
But this has been put to rest by Centerra.
“In recent meetings with the Kyrgyz Republic Government, senior Kyrgyz Republic officials have confirmed to Centerra that the Government is also not interested in pursuing the transaction proposed by Chaarat,” said the company in a statement.
“Centerra notes that the Kumtor Mine is directly held through Centerra’s wholly-owned, direct subsidiary, Kumtor Gold Company CJSC, and the transaction proposed by Chaarat could not occur without the participation of both Centerra and the Kyrgyz Republic Government.”