Centerra Gold Inc. (TSX:CG) announced that the Mongolian government has passed a resolution that sets state ownership of the Gatsuurt project at 34 percent. The resolution also authorizes the government to complete negotiations regarding the terms of that ownership.
As quoted in the press release:
In October 2015, the Company and the Government agreed to a 3% special royalty in place of the state 34% ownership interest in the project (such royalty being in addition to the existing Mongolian mineral royalty and tax regime). Based on our discussions with the Government, Centerra understands that the resolution is a mandate to the Government to implement such agreement between Centerra and the Government.
Scott Perry, CEO of Centerra Gold, commented:
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. We look forward to developing Gatsuurt so we can continue to operate in Mongolia for many more years to come.
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