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Friday, 31st August 2007 (3410 views)

Cameco Corporation and Centerra Gold have reached agreements with the Kyrgyz government to eventually divest Cameco of its share in their joint venture in the mining operations in Kumtor.

Centerra is a company currently owned both by Cameco (53 per cent) and the Kyrgyz government (16 per cent) and develops and manages the Kumtor gold mine.

Under the new agreement, the Kyrgyz government will continue to support Centerra's long-term development of the mine and will facilitate the divestiture of Cameco's interest in Centerra.

The Kyrgyz government will receive 32.3 million shares from Cameco, of which 15 million will be received immediately on signing the agreement.

The other 17.3 million shares will be received by the government after certain conditions are met or after four years of the agreement.

Cameco's percentage of share will then drip to 41 per cent, with the Kyrgyz republic owning 29 per cent.

"These agreements provide a platform for a predictable and stable business climate for the Kumtor gold mine. We will work closely with Centerra and the Kyrgyz government to enable Centerra to successfully pursue its mandate," said CEO of Cameco Jerry Grandey.

According to its website, Cameco has increased its dividends by 138 per cent since 2002.

 

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