OREANDA-NEWS. The EBRD has sold half its equity stake in Centerra Gold, a Canadian gold mining company, whose primary operations are in the Kyrgyz Republic and Mongolia. The EBRD’s 2.3 million shares in Centerra Gold accounted for approximately 1.06 per cent of the company’s share capital, the EBRD press service reports.

The business relationship between the EBRD and the Canadian gold producer’s Kyrgyz/Mongolian operations dates back to May 1995, when the Bank provided a debt and equity financing facility to Kumtor Gold Company, a joint venture between Cameco Corporation of Canada and Kyrgyzaltyn, the Kyrgyz state-owned gold mining company. The EBRD’s equity was converted into Centerra Gold shares at its IPO in June 2004.

The shares, which are listed on the Toronto Stock Exchange, were placed through CIBC World Markets.

Kevin Bortz, EBRD Director for the natural resources sector, said that the Bank had achieved a number of important objectives during the past 3 years as an equity investor in Centerra Gold. The EBRD supported the development of a newly privatised gold mining company which, twelve years on, is the largest gold producer both in the Kyrgyz Republic and Mongolia. The Bank assisted in the implementation of the Extractive Industries Transparency Initiatives (EITI) in the Kyrgyz Republic, helped with the preservation of the local biodiversity and contributes to the company’s commitment to applying sustainable development international standards to its mining operations in the Kyrgyz Republic and Mongolia.

The EBRD remains committed to Centerra Gold and looks forward to its continued involvement in the future success of the company which upholds high corporate standards in the Bank’s region.