Sale of Gekko Equipment

19 Feb 2007 07:01

Celtic Resources Holdings PLC19 February 2007 FOR IMMEDIATE RELEASE 19 February 2007 Celtic Resources Holdings Plc Sale of Gekko Equipment Celtic Resources ("Celtic"; ticker "CER") is pleased to announce that it hassold it's Gekko Equipment to Iberian Resources Limited ("Iberian"), anAustralian company quoted on ASX, in Exchange for 2.5 million Iberian ordinaryshares ("Iberian Shares") valuing the Gekko Equipment at A$1.67m (£0.7m) basedon today's closing price of A$0.665. Following the completion of thistransaction Celtic will hold 2.16% of the issued ordinary share capital ofIberian. The Gekko Model 10,000 Intense Leach Reactor and In Line Pressure Jigs comprisean unused unit that was originally purchased by Celtic for use in the processplant at the Nezhdaninskoye Gold Mine in Russia. It is valued in Celtic's 31December 2006 accounts at US$778,000. Due to the negotiations that arose overthe ownership of Nezhdaninskoye, the equipment remained containerised inAustralia. Celtic has since sold its interest in the project and the equipmentis no longer required by the Company. In consideration for the plant Iberian will issue Celtic with 2.5 millionIberian Shares under the following "lock in" arrangements: O No sale of shares for 3 months O One third of shares restricted for 3 months. O One third of shares restricted for 6 months. O One third of shares restricted for 9 months. O Any sale of shares will be conducted in an orderly manner in consultation with Iberian Resources Kevin Foo, Managing Director of Celtic commented, "Celtic is pleased to realisesome value out of the equipment in the form of this new shareholding. Iberian isan emerging European gold producer with a JORC resource of over 2 million ouncesand a strong balance sheet which is commissioning its first gold mine in Armenia." For further information please contact: Kevin Foo / Jonathan Scott-Barrett Leesa Peters/ Laurence ReadKate Dexter-SmithCeltic Resources Holdings Plc Conduit PRTel: + 44 (0)20 7921 8800 Tel: +44 (0)20 7429 6600/ 0781 215 9885Investors@celticresources.com leesa@conduitpr.com Frank Moxon / Simon EdwardsEvolution Securities LimitedTel: +44 (0) 20 7071 4300www.celticresources.com This information is provided by RNS The company news service from the London Stock Exchange