Cerillion Regulatory News (CER)

13 Oct 2006 14:35

Eureka Mining PLC13 October 2006 For immediate announcement Eureka Mining plc ("Eureka" or the "Company") Related party transaction Eureka announces that it has agreed an extension to its loan agreement withCeltic Resources Holdings plc ("Celtic"). Under the terms of the agreement,Celtic has loaned Eureka a further $3 million bringing the aggregateindebtedness of Eureka to Celtic under this agreement to $4.65 million plusaccrued interest (the "Loan"). Of the $3 million loaned, $2 million is to bepaid over immediately to the vendor of the Chelyabinsk Copper Company Limited ("CCC"), Eureka's wholly owned subsidiary, to satisfy all of the outstandingconsideration for the acquisition of CCC. The Loan is secured by way of a debenture over the assets of the Company and ofCCC and a specific charge over the shares in CCC. Interest on the Loan accruesat the rate of 1 per cent. of the maximum amount advanced at any time during anycalendar month for each calendar month or part thereof and the Loan is repayableon 29 December 2006. Owing to the facts that Kevin Foo, Chairman of Eureka, is also Chief ExecutiveOfficer of Celtic and Celtic is a substantial shareholder in Eureka, the Loan isa related party transaction according to the AIM Rules. Having consulted withthe Company's nominated adviser, Cenkos Securities Limited, the directors ofEureka, with the exception of Kevin Foo who is a related party and David Bartleywho is currently incapacitated, consider that the terms of the transaction arefair and reasonable insofar as its shareholders are concerned. This information is provided by RNS The company news service from the London Stock Exchange