Centerra announced on Friday that it had reached an agreement with the government to extend the period from April 20 to May 31, to meet conditions precedent to a strategic agreement struck in September that was designed to resolve long-running issues over its flagship gold mine.

"The company notes that the government of Prime Minister Sapar Isakov was dismissed by the President of the Kyrgyz Republic yesterday following a vote of no confidence in the Kyrgyz Republic Parliament," Centerra said. 

"We understand that Parliament is in the process of appointing a new government and that Mr Isakov and other government officials will continue in their roles until a new government is formed."

It said it expected to "continue to work with the government of the Kyrgyz Republic to ensure the satisfaction of the remaining conditions precedent," which included the termination of certain legal proceedings and granting of land use permits.

Centerra had signed the US$60 million deal last year, with the miner agreeing to fund nature and cancer care programmes in return for an end to all environmental claims over Kumtor, a guarantee of no future blocks on money transfers and a guarantee of free movement for Centerra employees.

It said many of the conditions precedent had been satisfied but said there were no assurances and added if the matter was not successfully resolved, it could have "a material adverse impact" on the company.

Centerra has been looking to reduce its reliance on Kumtor. It has just notched up a full year of production at its Mount Milligan gold mine in Canada, although that operation has been set back by a series of water issues in recent months.

It also acquired AuRico Metals in January for its advanced Kemess gold-copper project in Canada, and is planning to start construction at its Öksüt gold project in Turkey this quarter.

Its shares closed down just over 1% on Friday to C$7.83, near the middle of its 52-week range.