TORONTO – BARRICK GOLD has announced that it will make a US$28-million purchase of 3.7 million shares and 1.84 million warrants of CELTIC RESOURCES HOLDINGS of London, U.K. The deal is subject to regulatory and shareholder approval. If it goes through, Barrick will own about 9% of Celtic, and exercising the warrants would give it a further 4.5%.
For its investment Barrick will gain an exclusive option to 50% of any acquisition made by Celtic in Kazakhstan and the right to participate in any further equity financings up to US$75 million within a year. Barrick will also nominate two directors to the Celtic board.
Celtic’s assets include the 50%-owned Nezhdaninskoye gold/silver mine in Russia, the 100%-owned Suzdal gold mine and the 75%-owned Zherek gold mine, the latter two being located in Kazakhstan. Celtic is currently in negotiations to acquire the remaining 50% of the Nezhdaninskoye mine. Barrick could then purchase a 51% interest in that mine for US$195 million within six months.
Learn more about Celtic at www.CelticResources.com.