Chaarat Gold has pulled out of the proposed acquisition of both Canadian gold mining firm Centerra Gold for C$2bn ($1.52bn) and its Kumtor mine in Kyrgyzstan after failing to engage with the latter’s management.

The company first made an offer to purchase the mine from Centerra. However, the Canadian company did not show interest in selling the mine, following which Chaarat made a takeover bid for Centerra in September.

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The proposed offer value comprised a premium of at least 35% above Centerra’s prevailing share price of C$5.48 ($4.17) at the time of the proposal.

Chaarat noted that repeated attempts to engage in an amicable discussion with the management of Centerra did not materialise.

“Chaarat was hoping to reach an amicable and mutually beneficial agreement with Centerra on either of its two proposals.”

In a statement, the company said: “Chaarat was hoping to reach an amicable and mutually beneficial agreement with Centerra on either of its two proposals, which would have created meaningful value for Centerra’s investors and stakeholders, including the Kyrgyz Republic. However, Centerra’s board and management have continually declined to engage with Chaarat.”

The company’s acquisition bid for the mine was a three-way deal, which also involved the Kyrgyz state consortium Kyrgyzaltyn.

Under the terms of the proposal, Kyrgyzaltyn would have had rights exceeding 50% of the mine’s post-tax cash flow.

Located around 60km north of the border with China, the Kumtor mine produced more than 500,000oz of gold last year.

Earlier this week, Chaarat reached a deal to buy the Kapan polymetallic mine in Armenia from Russia’s Polymetal International as part of its strategy to become a significant gold company in the Commonwealth of Independent States (CIS).