Cerillion Regulatory News (CER)

10 Oct 2005 10:37

Celtic Resources Holdings PLC10 October 2005 The following announcement replaces the "Placing" announcement released today at07.37 under RNS number 4142S. Amendments are identified with an asterisk (*). The full amended text is shown below. Celtic Resources Holdings Plc ("Celtic" or "the Company") US$10 million placing Celtic is pleased to announce that Altima Global Special Situations Master Fund Limited and Altima Global Opportunities Master Fund Limited* ("Altima") have agreed to invest US$10 million (approximately £5.68 million) by way of a subscription for 2,841,910 new ordinary shares of €0.25 each in the Company at a price of £2.00 per ordinary share. The new shares represent 6.35 per cent. of the enlarged issued ordinary share capital of the Company. Altima will also be issued, subject to shareholder approval, an equal number of conditional warrants, to subscribe for ordinary shares at a price of £2.50 per share exercisable at any time before the 30th September 2008. The funds will be used for working capital purposes, including increasing production at the Suzdal gold mine in Kazakhstan to generate positive cash flow before the end of the year and to test by surface drilling the continuity of a very promising zone found between orebodies 3 and 4. Application has been made for 2,841,910 new ordinary shares of €0.25 each to be admitted to trading on the AIM Market of the London Stock Exchange plc. These shares will rank pari passu with existing ordinary shares and dealings are expected to commence in the new ordinary shares at 08.00 a.m. on the 14th October 2005. The issue of warrants is conditional upon the approval of shareholders at anextraordinary general meeting and a circular will be sent to shareholdersshortly to convene such a meeting. Commenting on the transaction, Celtic Chairman, Peter Hannen, said, "We are very pleased and encouraged that Altima has recognised the great value in our shares at this price and continues to support the Company." A spokesman for Altima said, "We are pleased to renew our association with Celtic and to support it in consolidating its Russian interests and further developing its business in Kazakhstan." For further information please contact: Kevin Foo / Kate Dexter Smith Leesa Peters / Laurence ReadCeltic Resources Holdings Plc Conduit PRTel: + 44 (0) 20 7921 8800 Tel: +44 (0) 781 215 9885 / Investors@celticresources.com Tel: +44 (0)20 7618 8708 leesa@conduitpr.com www.celticresources.com This information is provided by RNS The company news service from the London Stock Exchange