Celtic Resources Holdings PLC
31 July 2007
Celtic Resources Holdings Plc (AIM:CER)
("Celtic Resources" or the "Company")
Miheevskoye project sold for US$33m
The Directors of Celtic Resources are pleased to announce the sale of the
Miheevskoye copper-gold project to The Russian Copper Company ("RCC") for a
total consideration of US$33 million. Celtic Resources' share of the sale
proceeds is US$26.5 million; the balance of US$6.5 million will be paid to AGL
Ltd ("AGL") the joint venture partner announced in January 2007.
Celtic Resources acquired Eureka Mining Plc in December 2006, which included two
large copper-gold porphyry deposits, Miheevskoye and Tominskoye located in the
Chelyabinsk region of southern Russia. Miheevskoye has a JORC resource of 426
million tonnes of ore at 0.37% Cu and 0.10g/t Au. RCC expressed an interest in
Miheevskoye early this year and after consultation with the joint venture
partner, AGL, it was agreed to enter into negotiations with RCC and the
transaction has now completed.
The Tominskoye project, located 40km south of the city of Chelyabinsk is also in
joint venture with AGL. It is owned 74.5% Celtic Resources and 25.5% AGL and is
currently under pre-feasibility study to develop the Russian classified C1 and
C2 resources of 241 million tonnes at 0.58% Cu and 0.12g/t Au.
Celtic Resources is actively assessing several gold and base metal projects in
Russia and Kazakhstan with a view of further acquisitions and joint ventures.
Commenting on the disposal, Kevin Foo, Managing Director said, "This transaction
is another demonstration of a successful deal between western and Russian mining
partners. It also vindicates Celtic Resources' decision to acquire Eureka Mining
in 2006 and unlock its true value."
For further information please contact:
Kevin Foo / Jonathan Scott-Barrett Jane Stacey / Leesa Peters
Celtic Resources Holdings Plc Conduit PR
Tel: + 44 (0)20 7921 8800 Tel: +44 (0)20 7429 6606 / (0)7922 923 306
Investors@celticresources.com jane@conduitpr.com
Simon Raggett / Braden Saunders Peter Krens
Strand Partners Limited Mirabaud Securities Limited
Tel: +44 (0) 20 7409 3494 Tel: +44 (0)20 7878 3362
www.celticresources.com
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