Celtic Resources Holdings PLC
18 May 2006
Celtic Resources Holdings Plc
Nezhdaninskoye sale for US$80 million completed
Celtic Resources Holdings Plc ("Celtic" or "the Company") is pleased to announce
that it has completed the sale of 20% of The South Verkhoyansk Mining Company
("SVMC") for US$80 million cash (the "Consideration"). SVMC is the license
holder for the Nezhdaninskoye gold mine in Yakutia, Russia ("Nezhdaninskoye").
On 3 February 2006 the Company announced the outcome of its discussions on the
future of Nezhdaninskoye with Interros Group, one of Russia's largest private
investment companies and a controlling shareholder in JSC MMC Norilsk Nickel and
Polyus. As a result of these discussions, KM Technologies (Overseas) Limited, an
investment vehicle for the Interros Group, made the cash offer. The
Consideration has been held in escrow pending the withdrawal of Celtic's legal
actions surrounding the disputed ownership in Nezhdaninskoye. That withdrawal is
now complete and the Consideration has been received in full by the Company.
Comment
Peter Hannen, Chairman commented, "Celtic is now placed to continue with its
fundamental aim which remains: to grow into a significant gold mining company.
We are actively assessing potential projects for acquisition to build on the
production base at the Suzdal and Zherek mines in Kazakhstan. We are pleased to
finally have completed this transaction and the Company can now look to the
future, move forward and grow."
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)7812 159 885
Tel: +44(0)20 7429 6666
Investors@celticresources.com leesa@conduitpr.com
Frank Moxon / Nick Morgan
Williams de Broe Plc
Tel: +44 (0) 20 7588 7511
www.celticresources.com
This information is provided by RNS
The company news service from the London Stock Exchange