Centerra GoldInc.'s major shareholder, Kyrgyzaltyn JSC, has voted against the company's plannedUS$1.1 billiontakeover of ThompsonCreek Metals Co. Inc.
The Kyrgyzstan state-backed gold company said July 7 that itonly found out about the deal at the board meeting held to vote on the proposedacquisition.
Kyrgyzaltyn is against the deal because it will dilute its33% shareholding in Centerra.
The company said it had not been given a chance to reviewthe finer details of the proposed acquisition ahead of the meeting, but nowthat it has been provided with further information from Centerra, Kyrgyzaltynwill review the transaction.
"Kyrgyzaltyn JSC believes that the decision to conductany transactions with the assets of the company Centerra Gold should take intoaccount the views and interests of all shareholders," the company said ina statement.
According to a same day Reuters report, Kyrgyzaltyn does nothave the voting power to block the deal.
Centerra is involved in a dispute with Kyrgyzstanauthorities over alleged violations of environmental standards and a breach ofits investment agreement with the government for the gold mine.
The company revealed in May that it is taking the KyrgyzRepublic to arbitrationafter a court orderedCenterra subsidiary Kumtor Gold Co. CJSC to pay about US$98 million forenvironmental damages.
Article amended at 11:20p.m. ET on July 10, 2016, to correct the type of meeting held to vote on theacquisition.