The company is also expected to pay about $36 million to Kyrgyzaltyn, conditional to the cancellation of all legal proceedings involving the parties in all jurisdictions within 45 days of the date of the deal, Centerra said in the statement.
Roughly $25 million of the cash payment will be withheld by Centerra and remitted to the Canadian tax authorities on account of Canadian withholding tax payable by Kyrgyzaltyn on the shares exchange and the $11 million balance will be paid to Kyrgyzaltyn on closing of the arrangement.
In exchange, Kyrgyzaltyn will return its 26% stake in Centerra back to the company, which plans to cancel the shares. The equity interest was valued at about C$972 million ($777m), based on the company’s shares closing price of C$12.56 a piece on April 1.
The Toronto-based miner and the Kyrgyz government have clashed over financial and environmental issues related to the mine for years. Their standoff took a…
