Irish exploration company Celtic Resources hopes to raise $5.5 million from a conditional share placing of approximately 28.6 million new shares at 13.5p each.
Chairman and managing director Mr Kevin Foo said the proceeds of the placing will be largely used to accelerate development of the Nezhdaninskoye project in Kazakhstan.
Celtic, which aims to become one of the largest gold producers in Russia and Kazakhstan within the next five years, poured first gold from its recently commissioned cyanide leach plant at its 50 per cent owned Nezhdaninskoye gold mine in Russia, which contains 27 million ounces of gold.
The Russian government recently introduced incentives to develop the country’s natural resources including reductions in the corporate tax rate from 30 per cent to 24 per cent and the elimination of the 5 per cent gold export tax.
Gold can now be sold in Russia to a number of approved banks or exported directly.
Shareholders can vote on the placing at an an extraordinary general meeting scheduled for April 19th 2002.