We have increased our multiple to reflect reducedpolitical uncertainty UBS's Brian MacArthur said in a note Cameco stock climbed

"We have increased our multiple to reflect reducedpolitical uncertainty," UBS's Brian MacArthur said in a note Cameco stock climbed 4.8 percent to C$25.22. "Overall, it's positive," said John Ing, president ofToronto investment dealer Maison Placements. He said he expectsthe stock to bump higher when the deal is passed by the Kyrgyzparliament, which was the hurdle it failed to clear last time. At a signing ceremony, Kubanychbek Isabekov, deputy speakerof parliament, said the deal would be considered next week. "We will review (the agreement) on April 30 and approveit," he said.Centerra's shares rose C$1.03 to C$7.26 on the TorontoStock Exchange.

The shares rose 11 percent on Wednesday afterthe company said it had submitted a draft agreement to topKyrgyz government officials for approval. UBS Investment Research upgraded its price target onCenterra to C$9 from C$6.50 on the deal, even as it trimmed itsearnings per share estimates to reflect the new taxes and theshare dilution from the agreement. The deal should put to rest fears of nationalization ofKumtor, which spiked after a Kyrgyz lawmaker put forward a billto take control of the country's gold mines in March 2007. CALMS NATIONALIZATION FEARS Kumtor is expected to produce between 560,000 and 600,000ounces of gold in 2009 at a cash cost of $485 to $525 an ounce,according to a forecast released in February. "There's no buyer on the horizon, but that's been our goal... to provide for Cameco to effectively leave the goldbusiness," said Cameco's Gord Struthers. The agreement also introduces a new simplified tax regimeunder which revenue from the Kumtor mine will be taxed at 14percent -- retroactive to the beginning of 2008 -- and increaseCenterra's concession around the mine to include twoexploration licenses that were suspended last year, but are nowreinstated.

A spokesman for Cameco, which spun off Centerra in 2004,said it intends to divest its remaining stake in the gold minerat some point after the deal is ratified. Under the new agreement, Kyrgyzstan's stake in Centerrawill rise to as much as 33 percent from 15.66 percent, whileCameco's stake will fall to 37.8 percent from 52.66 percent. The shift will be accomplished by an 18.2 million shareissue to the government and a transfer of up to 25.3 millionshares from Cameco, depending on certain conditions being met. We willforward the document to the parliament and hope they will notput it off," Prime Minister Igor Chudinov said at a signingceremony. Centerra, which is majority-owned by Canadian uraniumproducer Cameco Corp (CCO.TO), has been trying to revive anownership agreement for the mine -- the biggest industrialenterprise in the Central Asian country -- that expired lastJune while it was awaiting approval by the Kyrgyz parliament. * Agreement puts off nationalization fears Stocks  |  Regulatory News  |  Mergers & Acquisitions  |  IPOs  |  Global Markets * Kyrgyzstan's Centerra stake to rise as high as 33 pct * Cameco's stake will fall to 37.8 pct * Centerra shares jump 16.5 pct to C$7.26 (Adds details of Cameco's planned divestment, comments) By Olga Dzyubenko and Cameron French BISHKEK/TORONTO, April 24 (Reuters) - Centerra Gold (CG.TO)and the government of Kyrgyzstan have reached a new ownershipagreement for Centerra's Kumtor gold mine, the two sides saidon Friday, driving Centerra's shares up 16.5 percent as fearsthat the mine will be nationalized started to fade "The government has approved the agreement ...

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