Centerra Gold Sees Kumtor Subsidiaries File Preemptive Bankruptcy After Kumtor Mine Seizure

Centerra Gold Inc. (TSX: CG) announced late Monday night that its wholly-owned subsidiaries Kumtor Gold Company and Kumtor Operating Company, which own and operate the Kumtor mine in Kyrgyzstan, have filed for bankruptcy to preserve their value. 

The company said this move is meant to preempt any claims against the subsidiaries following the Government of the Kyrgyz Republic’s alleged seizure of the Kumtor mine.

According to Centerra, the Chapter 11 filings came after public statements by Kyrgyz officials indicated intentions to use spurious environmental and tax claims to place the subsidiary into some form of an insolvency procedure in the country, leading to a possible stripping of its assets.

“While these claims have not been asserted against Centerra itself, the actions of the Kyrgyz Government and others have compelled us to take steps to preserve the value of [the subsidiaries] for all our stakeholders,” said Centerra President & CEO Scott Perry.

The company further clarifies that the bankruptcy proceedings of its subsidiaries do not affect Centerra and its other areas of business. Kumtor Gold Company and Kumtor Operating Company are also both currently solvent, with total assets in excess of US$1.1 billion, and holds no external bank debt.

Centerra has also retained external advisors for its strategic review related to the Kumtor mine situation. The company said it is currently evaluating all possible alternatives “to preserve and enhance value for its stakeholders while ensuring that the Kyrgyz government does not directly or indirectly profit from its unlawful expropriation of the Kumtor mine.”

Centerra Gold Inc. last traded at $9.78 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

What You Don’t Know About Early Gold Bull Markets | Rick Rule

In this interview, Rick Rule examines the disconnect between gold price performance and gold equity...

Monday, June 9, 2025, 02:57:00 PM

New Found Gold Reports Drill Results For Single Hole At Lotto Zone

New Found Gold (TSXV: NFG) this morning released assay results from a single drill hole...

Friday, October 2, 2020, 08:36:52 AM

New Found Gold Executives Exercise $5.25 Million Worth Of Options

New Found Gold (TSXV: NFG) this morning issued a release touting insider transactions for the...

Monday, January 4, 2021, 09:44:18 AM

Orvana Increases Taguas Resource Estimate To 2.6 Million Gold Equivalent Ounces

Orvana Minerals Corp. (TSX: ORV) today announced that the company has updated the mineral resource...

Monday, July 5, 2021, 04:34:00 PM

Maple Gold Mines Hits 195 Metres Of 1.28 G/T Gold

Maple Gold Mines Ltd. (TSXV: MGM) today reported the results from drilling their second hole...

Wednesday, May 26, 2021, 10:03:00 AM