Business
Re Joint Venture
Re Joint Venture.
About this update from Cerillion Plc
[{"type":"text","content":"\n Celtic Resources Holdings PLC\n31 January 2007\n\n\n\n\nFOR IMMEDIATE RELEASE 31 January 2007\n\n Celtic Resources Holdings Plc\n (\"Celtic\" or \"the Company\")\n \n Joint Venture Agreement for the Development of the Miheevskoye Copper\n and Gold Project in Russia\n\n\nThe Directors of Celtic are pleased to announce that the Company has entered\ninto a joint venture agreement to develop the Miheevskoye copper and gold\ndeposit in Russia, one of the assets of Eureka Mining Plc which was acquired by\nCeltic in December 2006.\n\n\nHighlights\n\n •50/50 joint venture (JV) with Anime Global Limited (\"AGL\").\n\n •AGL's contribution to the joint venture valued at US$16m including US$10m\n in cash.\n\n •All compliance, licensing and technical work including confirmatory\n drilling for a bankable feasibility study to be carried out by Polymetal\n Engineering a company owned by Polymetal, Russia's largest silver producer\n and third largest gold producer.\n\n •Russian knowledge and expertise will be brought to the JV which aims at\n completion of the bankable feasibility study by year end and first copper\n production from oxide ores in 2008.\n\n\nThe JV will start immediately and develop an overall project plan which has\nthree key objectives:\n\n • Complete a bankable standard feasibility study on the deposit, including\n all local permits, approvals and licenses by the end of 2007\n\n • Define a fast track process that enables early copper production from\n treatment of oxide ores using the heap leaching and solvent extraction -\n electro winning (SX-EW) process\n\n • Define the optimum mine and process plant size for initial production of\n concentrates from sulphide ores and future expansion plans\n\nThe joint venture is structured as a part cash contribution and performance\nbased earn-in steps, which will be fully funded by AGL. Both the cash and\nearn-in steps are based on the successful completion of each phase. Following\nthe final phase, AGL will own a 50% interest in the resource. The total amount\nof cash and earn-in shares will be approximately $16m.\n\nPolymetal Engineering, a fully owned subsidiary of Polymetal, has been\ncontracted to execute the plans of the JV, including obtaining revised license\nconditions, submission of the Approved Permanent Conditions Report to the\nRussian State Committee for M...