Celtic Resources Holdings PLC
23 November 2005
Celtic Resources Holdings Plc
("Celtic" or "the Company")
Russian legal update
The Board of Celtic has noted the recent press comment in Russia concerning a
shareholders meeting of 18 November 2005 of OJSC "South Verkhoyansk Mining
Company" ("SVMC") which owns the Nezhdaninskoye gold mine. The board wishes to
clarify the current legal position concerning this meeting.
On 14 November 2005, the Voronezh Court in the Republic of Sakha (Yakutia), in
Eastern Russia, granted an injunctive order prohibiting the shareholders meeting
from making decisions which would effect an issue of new shares, approve a paper
loan by Polyus, a wholly owned subsidiary of Norilsk Nickel, to SVMC, approve a
new version of the company Charter or elect a new General Director. The relevant
parties were formerly notified of the injunction obtained.
Subsequent to this, on 18 November 2005, the Court took the decision to release
the injunction. However, according to article 144 of the Civil Procedural Code
of the Russsian Federation, such a decision could only enter into force after 24
November. On 21 November, the same Voronezh District Court suspended the
November 18 decision to release the injunction with the result that the
injunction continues to be legally valid and in force until final judgment is
made in the Civil case in which it was obtained. As a result the injunction
remains in force and renders any decisions of the shareholder meeting to which
it relates illegal.
Therefore the information on the legitimacy of the meeting, which appeared in
certain Russian publications, and which was also distributed by certain brokers'
offices, is not true.
The Company and its lawyers continue to vigorously defend Celtic's 50 per cent.
interest in SVMC and will provide additional updates on legal proceedings when
appropriate. Notwithstanding the strength of its legal position Celtic has
always been open to a negotiated resolution of ownership of the Nezhdaninskoye
mine. As previously announced discussions with Polyus in regards to this matter
and future development of Nezhdaninskoye are ongoing.
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
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