Business
Sale of Gekko Equipment
Sale of Gekko Equipment.
About this update from Cerillion Plc
[{"type":"text","content":"\n Celtic Resources Holdings PLC\n19 February 2007\n\n\n\nFOR IMMEDIATE RELEASE 19 February 2007\n\n Celtic Resources Holdings Plc\n \n Sale of Gekko Equipment\n\nCeltic Resources (\"Celtic\"; ticker \"CER\") is pleased to announce that it has\nsold it's Gekko Equipment to Iberian Resources Limited (\"Iberian\"), an\nAustralian company quoted on ASX, in Exchange for 2.5 million Iberian ordinary\nshares (\"Iberian Shares\") valuing the Gekko Equipment at A$1.67m (£0.7m) based\non today's closing price of A$0.665. Following the completion of this\ntransaction Celtic will hold 2.16% of the issued ordinary share capital of\nIberian.\n\nThe Gekko Model 10,000 Intense Leach Reactor and In Line Pressure Jigs comprise\nan unused unit that was originally purchased by Celtic for use in the process\nplant at the Nezhdaninskoye Gold Mine in Russia. It is valued in Celtic's 31\nDecember 2006 accounts at US$778,000. Due to the negotiations that arose over\nthe ownership of Nezhdaninskoye, the equipment remained containerised in\nAustralia. Celtic has since sold its interest in the project and the equipment\nis no longer required by the Company.\n\n\nIn consideration for the plant Iberian will issue Celtic with 2.5 million\nIberian Shares under the following \"lock in\" arrangements:\n\nO No sale of shares for 3 months\n\nO One third of shares restricted for 3 months.\n\nO One third of shares restricted for 6 months.\n\nO One third of shares restricted for 9 months.\n\nO Any sale of shares will be conducted in an orderly manner in\n consultation with Iberian Resources\n\nKevin Foo, Managing Director of Celtic commented, \"Celtic is pleased to realise\nsome value out of the equipment in the form of this new shareholding. Iberian is\nan emerging European gold producer with a JORC resource of over 2 million ounces\nand a strong balance sheet which is commissioning its first gold mine in \nArmenia.\"\n\n\nFor further information please contact:\n\nKevin Foo / Jonathan Scott-Barrett Leesa Peters/ Laurence Read\nKate Dexter-Smith\nCeltic Resources Holdings Plc Conduit PR\nTel: + 44 (0)20 7921 8800 Tel: +44 (0)20 7429 6600/ 0781 215 9885\[email protected] [email protected]\n\nFrank Moxon / Simon Edwards\nEvolution Securities Limited\nTel: +44 (0) 20 7071 4300\nwww.celticresources.com\n\n\n\n This information is provided by RNS\n The c...