23rd Nov 2005 10:29
Celtic Resources Holdings PLC23 November 2005 Celtic Resources Holdings Plc ("Celtic" or "the Company") Russian legal update The Board of Celtic has noted the recent press comment in Russia concerning ashareholders meeting of 18 November 2005 of OJSC "South Verkhoyansk MiningCompany" ("SVMC") which owns the Nezhdaninskoye gold mine. The board wishes toclarify the current legal position concerning this meeting. On 14 November 2005, the Voronezh Court in the Republic of Sakha (Yakutia), inEastern Russia, granted an injunctive order prohibiting the shareholders meetingfrom making decisions which would effect an issue of new shares, approve a paperloan by Polyus, a wholly owned subsidiary of Norilsk Nickel, to SVMC, approve anew version of the company Charter or elect a new General Director. The relevantparties were formerly notified of the injunction obtained. Subsequent to this, on 18 November 2005, the Court took the decision to releasethe injunction. However, according to article 144 of the Civil Procedural Codeof the Russsian Federation, such a decision could only enter into force after 24November. On 21 November, the same Voronezh District Court suspended theNovember 18 decision to release the injunction with the result that theinjunction continues to be legally valid and in force until final judgment ismade in the Civil case in which it was obtained. As a result the injunctionremains in force and renders any decisions of the shareholder meeting to whichit relates illegal. Therefore the information on the legitimacy of the meeting, which appeared incertain Russian publications, and which was also distributed by certain brokers'offices, is not true. The Company and its lawyers continue to vigorously defend Celtic's 50 per cent.interest in SVMC and will provide additional updates on legal proceedings whenappropriate. Notwithstanding the strength of its legal position Celtic hasalways been open to a negotiated resolution of ownership of the Nezhdaninskoyemine. As previously announced discussions with Polyus in regards to this matterand future development of Nezhdaninskoye are ongoing. For further information please contact: Kevin Foo / Kate Dexter Smith Leesa Peters / Laurence ReadCeltic Resources Holdings Plc Conduit PRTel: + 44 (0)20 7921 8800 Tel: +44 (0)781 215 9885 / Tel: +44 (0)20 7618 8708 [email protected] [email protected] Frank Moxon / Nick MorganWilliams de Broe PlcTel: +44 (0)20 7588 7511 www.celticresources.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Cerillion