Kyrgyzstan's government is ready to go to the court of Canada, if violations in deciding on the issue of shares at Centerra Gold Inc are confirmed, the Chairman of Kyrgyzaltyn JSC Board Almaz Alimbekov said today at a meeting of Respublika - Ata Jurt faction.
He noted that during the government's negotiations with the company management, who visited Bishkek in January 2016, the Kyrgyz party has noted the unacceptability of such decisions as an additional issue of shares. "We, as shareholders, have warned them not to hold emissions any more. In addition, we reported that we will hire an international law firm, and if violations in deciding on the shares issue are confirmed, we will go to the court of Canada," Almaz Alimbekov added.
The head of Kyrgyzaltyn's Board said that the representatives of the Kyrgyz party in the Board of Directors of Centerra Gold Inc. expressed disagreement. "They said they consider the decision unreasonable, and there is a possibility of violation of thedecision-making procedure," Almaz Alimbekov said.
The decision to issue additional shares in an amount of 4.6 million the Board of Directors of Centerra Gold adopted on December 17, 2015. Representatives from the Kyrgyz party - Emil Orozbaev, Kalinur Sadyrov and Kylychbek Shakirov, who voted against - were in the minority. According to preliminary government estimates, it has reduced the share of the republic in the company from 32.7 to 32.1 percent.