SOURCE: Centerra Gold Inc.

Centerra Gold Inc.

December 09, 2016 08:40 ET

Centerra Gold Announces Extension of the Oksut Project Financing Facility and Suspension of the Company's Dividend

All figures are in United States dollars unless otherwise stated

TORONTO, ON--(Marketwired - December 09, 2016) - Centerra Gold Inc. (TSX: CG) announced today that UniCredit Bank AG and the European Bank for Reconstruction and Development (EBRD) have granted to Centerra's wholly owned Turkish subsidiary, Öksüt Madencilik, an extension from November 30, 2016 to June 30, 2017 to satisfy various conditions to access the $150 million Öksüt project credit facility. The credit facility will be used to finance a substantial portion of the construction, development and operation of the Company's Öksüt gold mine and its related infrastructure in the Kayseri region of central Turkey. Öksüt will continue to work to satisfy the conditions by such new deadline; however some conditions, such as the receipt of the pastureland permit, are beyond the control of Centerra and Öksüt. There are no assurances that all conditions will be satisfied by June 30, 2017.

In light of the current restrictions relating to funds held at Centerra's wholly-owned Kyrgyz Republic subsidiary, Kumtor Gold Company, Centerra's Board at its regularly scheduled board meeting yesterday decided against declaring a third quarter dividend. In addition, the Board has decided to suspend future dividends for the time being. The Board will reassess the declaration of dividends once this matter is fully resolved.

Cautionary Note Regarding Forward-looking Information
Information contained in this news release which is not a statement of historical fact, may be "forward looking information" for the purposes of Canadian securities laws. Such forward looking information involves risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking information. These forward looking statements include, but are not limited to, statements with respect to Centerra's plans to satisfy the conditions to access the Öksüt project credit facility, and Centerra's intentions to reassess the declaration of dividends in the future.

About Centerra
Centerra is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide. Centerra is the largest Western-based gold producer in Central Asia. Centerra's shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is headquartered in Toronto, Ontario, Canada.

Additional information on Centerra is available on the Company's web site at www.centerragold.com and at SEDAR at www.sedar.com.

Attachment Available: http://www.marketwire.com/library/MwGo/2016/12/9/11G124723/32-Oksut_Facility_Extension-FINAL-afaaabf7a17e88d3beac766b900181b2.pdf

Contact Information

  • For more information:
    John W. Pearson
    Vice President, Investor Relations
    (416) 204-1953
    Email contact