Celtic Resources Holdings said today it has sold its non-core Kazakhstan gold and base metal exploration assets to Eureka Mining PLC.
Eureka is a new company formed in the spin-off of these assets and planned for flotation on the Alternative Investment Market.
Celtic will retain a 44.4 per cent interest in Eureka following the expected admission of Eureka shares to trading on AIM on December 11th.
Following admission to AIM, Celtic said it intends to seek to distribute a significant proportion of its resultant holding in Eureka to its shareholders as a special dividend.
Williams de Broe has raised £7 million sterling for Eureka through the issue of 5,833,333 shares at 120 pence giving an expected market capitalisation on admission of £20.4 million.
Celtic's 44.4 per cent stake in Eureka was obtained by the sale of its non-core Kazakhstan assets to Eureka for £15 million satisfied by the issue of £7.6 million shares in Eureka.
Two of Celtic's senior management, Mr Kevin Foo and Mr Andrzej Sliwa, will join Eureka's board as non-executive chairman and executive director respectively.
The Kazakhstan mining assets, to be held by Eureka, have been valued by independent consultants at between £19 million and £22 million.
AFP