OREANDA-NEWS. On November 09, 2007 Severstal Resurs announced that it has reached agreement on the terms of a recommended acquisition by Severstal Resurs, through its affiliate Centroferve Limited, of the entire issued and to be issued share capital of Celtic Resources Holdings plc (“Celtic”), reported the press-centre of Severstal.

Severstal, through Centroferve, has agreed to increase its offer to 280 pence per share in cash, effective immediately, and to 290 pence per share in cash, in the event that Centroferve receives acceptances to its offer equivalent to 80% of Celtic's issued share capital.  This would entitle Severstal Resurs to proceed with a compulsory acquisition of any remaining shares outstanding in accordance with the Irish Takeover Rules.

At a price of 290 pence per share, the terms of the transaction represent:

a premium of approximately 43% to the closing price of Celtic shares on 17 September 2007, the day prior to an announcement by Celtic that it had received an approach from Severstal Resurs

a premium of approximately 52% to the one month volume weighted average share price for the period to 17 September 2007

a premium of approximately 54% to the three month volume weighted average share price for the period to 17 September 2007

The board of Celtic unanimously recommends this offer to its shareholders.  Celtic's directors have indicated that they intend to accept the Offer with respect to their own 9,0% stake in Celtic.  Severstal has already received an irrevocable undertaking from Bluecone Limited to accept its offer with respect to its 29,7% stake in Celtic, as well as a letter of intent from Barrick Gold Corporation to accept the offer with respect to its 6,6% stake in Celtic.  As a result, Centroferve has received support from shareholders representing 45,3% of Celtic's shares to accept its offer.

Commenting on the Offer on behalf of the Centroferve Board, Roman Deniskin, CEO of Severstal Resurs, said:
"Severstal is delighted to have reached agreement with the Board of Celtic. We welcome Celtic’s recommendation that shareholders should now accept our generous cash offer."