Published: February 8, 2016 |

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The Mongolian Parliament has passed a resolution setting the state ownership interest in Centerra Gold Inc.‘s Gatsuurt Project at 34 percent and authorizing the government to complete negotiations with Centerra on the terms of such ownership. In October 2015, the company and the government agreed to a 3 percent special royalty in place of the state 34 percent ownership interest in the project (such royalty being in addition to the existing Mongolian mineral royalty and tax regime). Based on discussions with the government, Centerra understands that the resolution is a mandate to the government to implement such agreement between Centerra and the government.

“The parliamentary resolution is a very important next step in advancing the Gatsuurt Project. The Gatsuurt Project represents an exciting opportunity to use Centerra’s existing Boroo mill and other infrastructure to develop the 1.6 million ounce Gatsuurt deposit with very modest initial capital investment. The company will now focus on finalizing the investment agreements with the government of Mongolia,” said Scott Perry, Centerra’s chief executive officer.

“We look forward to developing Gatsuurt so we can continue to operate in Mongolia for many more years to come,” added Perry.

The company expects to proceed with negotiating definitive agreements (including a deposit development agreement and an investment agreement) with the Mongolian Government. Following the successful completion of such agreements, the company will undertake economic and technical studies to update the existing studies on the project, which were completed and published in May 2006. As part of such work, the company will undertake a program of exploration drilling, aimed at substantially expanding the Gatsuurt oxide resource, and additional hydrogeological drilling. Following completion of definitive agreements the company expects to provide an update on the timeline for completion of such studies and drilling and for the start of project development.

The Gatsuurt Project is located approximately 55 kilometers by road from the company’s Boroo mine and is expected to be developed in accordance with applicable Mongolian environmental regulations and international standards, consistent with the standards adopted by the Boroo mine. The company plans to mine the ore at Gatsuurt and truck it to the Boroo mill to be processed.

About Centerra
Centerra is a Canadian-based gold mining company focused on operating, developing, exploring, and acquiring gold properties in Asia, North America, and other markets worldwide. Centerra is the largest Western-based gold producer in Central Asia. The company is headquartered in Toronto, Ontario, Canada.

To stop by Centerra’s website, CLICK HERE

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