Business
Farm out agreement
Farm out agreement.
About this update from Cerillion Plc
[{"type":"text","content":"\n Celtic Resources Holdings PLC\n12 June 2007\n\n\nFOR IMMEDIATE RELEASE 12th June 2007\n\n Celtic Resources Holdings Plc\n (\"Celtic\" or \"the Company\")\n \n\n Dostyk farm out agreement signed with Cigma Metals Corporation\n\nCeltic today announces that an agreement has been signed between Eureka Mining\nPlc (\"Eureka\") and Dostyk Gold LLP, its 100% owned subsidiaries, and Cigma\nMetals Corporation (\"Cigma\") which will allow Cigma to earn up to 90% of Dostyk\nGold LLP.\n\nDostyk Gold LLP is the holder of the license of the 14,000 km2 Dostyk mining\narea, located in northern Kazakhstan. It is Cigma's intention to convert the\ncurrent resource estimates into JORC compliant resources.\n\nSummary:\n\n • Cigma has made an initial payment of US$300,000 to secure 51% of the\n project. These funds will be used by Dostyk LLP to fund the working\n programme in accordance with the license conditions;\n\n • Four diamond drilling rigs are currently operating on Dostyk's Berezky\n and Quartzite copper and gold prospects, with 1,300 metres drilled to date.\n\n • Cigma has the right to acquire a further 20% following a second payment\n of US$700,000 increasing it's percentage participation to 71%;\n\n • A third and final option to acquire a further 19% on payment of\n US$1,000,000 in 2008 will increase Cigma's percentage participation to 90%,\n upon which Eureka will maintain a 10% carried interest.\n\nFor further information please contact:\n\nKevin Foo / Jonathan Scott-Barrett Leesa Peters / Jane Stacey\nCeltic Resources Holdings Plc Conduit PR\nTel: + 44 (0)20 7921 8800 Tel: +44 (0)20 7429 6666 / + 44 (0)781 215 9885\[email protected] [email protected]\n\n www.celticresources.com\n\n\nDostyk\n\nThe Dostyk mining area is situated in northern Kazakhstan between the cities of\nSemipalatinsk and Karaganda, in a well developed industrial region of Kazakhstan\n. Dostyk's properties comprise the Mykubinsk exploration and mining licence (MG\n785) covering an area of 14,189 km(2) and the Central Kazakhstan exploration and\nmining licence (MG 612) covering an area of 4,917 km(2). Both licences were\ngranted in 1995 for a period of 25 years with minimum expenditure commitment of\nUS$5 million for each licence.\n\nThe geology of the Dostyk properties comprises mainly volcanic and sedimentary\nrocks varying in age from Carbo...