Chaarat Gold Holdings Limited (LON:CGH) has withdrawn its proposed offer to buy Centerra Gold, the owner of the Kumtor mine in Kyrgyzstan.
Back in the spring, Chaarat approached Centerra about acquiring Kumtor, one of the largest gold mines in Central Asia which produced 500,000 ounces of the precious metal last year.
WATCH: Chaarat Gold's Artem Volynets discusses Centerra bid and expansion plans
After being knocked back, the AIM-quoted company returned with an offer to buy out Centerra as a whole, rather than just the asset.
Despite Chaarat proposing a bid of at least C$7.40 for each Centerra share, well above the current share price of C$4.95, and providing details of its funding, the Canadian miner refused to engage in any discussions.
“The board is convinced that Chaarat is a more natural long-term owner of the Kumtor mine,” read a statement on Wednesday.
“[But] due to the unwillingness of Centerra to engage with Chaarat, the Chaarat board is no longer pursuing either transaction.”
Other acquisition on the table instead
Chaarat shares remain suspended pending the publication of an admission document in relation to the potential acquisition of Kapan Mining and Processing Company, which it announced yesterday (Tuesday).
The company agreed to buy Kapan, which owns a polymetallic mine in Armenia, for US$55mln.
Assuming the deal goes ahead, it will take Chaarat’s gold equivalent production to 65,000 ounces a year.