CENTERRA SEEKING PENALTIES AGAINST KYRGYZ GOVERNMENT

Centerra Gold Inc. units on Wednesday filed a motion in a U.S. Bankruptcy Court seeking penalties of US$1 million a day against the Kyrgyzstan government, related to the seizure of the Canadian company’s Kumtor gold mine. Centerra Gold said in May its Kyrgyzstan units Kumtor Gold Co. (KGC) and Kumtor Operating Co. (KOC) commenced bankruptcy proceedings in a U.S. court following nationalization of the miner’s Kumtor gold mine by the former Soviet republic. The government seized control of Kyrgyzstan’s largest foreign investment project in May. Kyrgyzstan state security and prosecutors say the country has established enough evidence over corruption allegations to press on with removing Centerra Gold from the Kumtor gold mine. Centerra has denied all the allegations.