Centerra sells Mongolian business for US$35M - News.MN

Centerra sells Mongolian business for US$35M

Wednesday

2019/04/24

Dollar (USD)

2533.95

Ulaanbaatar

+19°C

Centerra sells Mongolian business for US$35M

Singapore-based private firm OZD Asia has bought up all the outstanding shares and debts of Centerra Netherlands, which held the Boroo mine and processing facility and the Gatsuurt project in Mongolia.

Toronto-based Centerra said OZD would retain the US$5 million payment received in September and the further US$5 million Centerra was due from Steppe Gold regarding the previous sale of the Altan Tsagaan Ovoo project.

“The disposition of the Mongolian business unit is another step forward in enhancing the overall quality of Centerra’s portfolio of assets and will allow management to focus on the company’s development projects in other jurisdictions, including Canada and Turkey,” CEO Scott Perry said.

During the June quarter of 2017, Centerra wrote down the value of its Mongolian assets by US$ 41.3 million and reduced the carrying value of the Mongolian assets to their estimated recoverable value of about US$60 million, the company said at the time.

It had a shaky relationship with the Mongolian authorities, enduring years of permitting delays and local opposition to the Gatsuurt project, while it battled to keep artisanal miners off its property.

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