Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, March 4, 2022

Article Excerpt

CENTERRA GOLD INC., $12.64, symbol CG on Toronto, is a Canadian gold mining and exploration company. It has three mines: one each in British Columbia, the Kyrgyz Republic, and Turkey. Centerra also owns the Kemess underground project in B.C., and operates a molybdenum business in the U.S. Meanwhile, the company still owns the Kumtor Mine in the Kyrgyz Republic. Centerra and the Kyrgyz government have clashed for years over financial and environmental issues related to the mine. Their dispute came to a head in May 2021, when the Kyrgyz Republic took control of the mine. The government of the Central Asia nation alleged that Centerra was running the mine in a detrimental way, both from the perspective of the environment and the wellbeing of nearby communities. Kumtor was the largest of Centerra’s gold mines, contributing more than 50% of the company’s total output. A resolution to the dispute seems uncertain; however, Centerra is aiming to receive the approximately 26.1% in Centerra common shares…