Celtic Resources Holdings PLC
10 October 2005
Celtic Resources Holdings Plc
("Celtic" or "the Company")
US$10 million placing
Celtic is pleased to announce that Altima Global Special Situations Fund
("Altima") have agreed to invest US$10 million (approximately £5.68 million)
by way of a subscription for 2,841,910 new ordinary shares of €0.25 each in
the Company at a price of £2.00 per ordinary share. The new shares represent
6.35 per cent. of the enlarged issued ordinary share capital of the Company.
Altima will also be issued, subject to shareholder approval, an equal number
of conditional warrants, to subscribe for ordinary shares at a price of £2.50
per share exercisable at any time before the 30th September 2008. The funds
will be used for working capital purposes, including increasing production at
the Suzdal gold mine in Kazakhstan to generate positive cash flow before the
end of the year and to test by surface drilling the continuity of a very
promising zone found between orebodies 3 and 4.
Application has been made for 2,841,910 new ordinary shares of €0.25 each to
be admitted to trading on the AIM Market of the London Stock Exchange plc.
These shares will rank pari passu with existing ordinary shares and dealings are
expected to commence in the new ordinary shares at 8.00 a.m. on the 14th
October 2005.
The issue of warrants is conditional upon the approval of shareholders at an
extraordinary general meeting and a circular will be sent to shareholders
shortly to convene such a meeting.
Commenting on the transaction, Celtic Chairman, Peter Hannen, said, "We are
very pleased and encouraged that Altima has recognised the great value in our
shares at this price and continues to support the Company."
A spokesman for Altima said, "We are pleased to renew our association with
Celtic and to support it in consolidating its Russian interests and further
developing its business in Kazakhstan."
For further information please contact:
Kevin Foo / Kate Dexter Smith Leesa Peters / Laurence Read
Celtic Resources Holdings Plc Conduit PR
Tel: + 44 (0) 20 7921 8800 Tel: +44 (0) 781 215 9885 /
Tel: +44 (0)20 7618 8708
Investors@celticresources.com
leesa@conduitpr.com
www.celticresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
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