Centerra Shares Get Lift on Kumtor Mine Deal

The Financial Post reported that shares in Centerra Gold (TSX:CG) climbed on Tuesday after the company announced it has reached a non-binding agreement with the government of the Kyrgyz Republic that could pave the way for joint ownership of Kumtor, the country’s flagship gold mine.

As quoted in the market news:

The mine, which accounted for some 12% of the Central Asian country’s gross domestic product in 2011, has been at the center of a spiraling controversy for months, with some within the country demanding that the gold mine be nationalized, while others have demanded that the country get a big stake in it.

Shares in Toronto-listed Centerra soared as much as 8.8% in early trading after it announced the tentative deal with Kyrgyz Republic to swap its 32.7% equity stake in the Canadian miner for a 50% ownership interest in the Kumtor mine itself.

Read the full Financial Post article