Cerillion Regulatory News (CER)

31 Jul 2007 07:01

Celtic Resources Holdings PLC31 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 theMiheevskoye copper-gold project to The Russian Copper Company ("RCC") for atotal consideration of US$33 million. Celtic Resources' share of the saleproceeds is US$26.5 million; the balance of US$6.5 million will be paid to AGLLtd ("AGL") the joint venture partner announced in January 2007. Celtic Resources acquired Eureka Mining Plc in December 2006, which included twolarge copper-gold porphyry deposits, Miheevskoye and Tominskoye located in theChelyabinsk region of southern Russia. Miheevskoye has a JORC resource of 426million tonnes of ore at 0.37% Cu and 0.10g/t Au. RCC expressed an interest inMiheevskoye early this year and after consultation with the joint venturepartner, AGL, it was agreed to enter into negotiations with RCC and thetransaction has now completed. The Tominskoye project, located 40km south of the city of Chelyabinsk is also injoint venture with AGL. It is owned 74.5% Celtic Resources and 25.5% AGL and iscurrently under pre-feasibility study to develop the Russian classified C1 andC2 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 inRussia and Kazakhstan with a view of further acquisitions and joint ventures. Commenting on the disposal, Kevin Foo, Managing Director said, "This transactionis another demonstration of a successful deal between western and Russian miningpartners. It also vindicates Celtic Resources' decision to acquire Eureka Miningin 2006 and unlock its true value." For further information please contact: Kevin Foo / Jonathan Scott-Barrett Jane Stacey / Leesa PetersCeltic Resources Holdings Plc Conduit PRTel: + 44 (0)20 7921 8800 Tel: +44 (0)20 7429 6606 / (0)7922 923 306Investors@celticresources.com jane@conduitpr.com Simon Raggett / Braden Saunders Peter KrensStrand Partners Limited Mirabaud Securities LimitedTel: +44 (0) 20 7409 3494 Tel: +44 (0)20 7878 3362 www.celticresources.com This information is provided by RNS The company news service from the London Stock Exchange