Redhaven, a British investment group, is to take a shareholding of up to 28 per cent in Celtic Resources Holdings, for £260,000 (€330,132). The funds will be used to work on the higher grades of the gold mine in south-east Russia, said managing director, Mr Sean Finlay. They will "kick off the process" and he expressed confidence that the group would be able to get project finance. Celtic has a 50 per cent stake in the mine and has board and management control. Redhaven will initially subscribe for 8.5 million ordinary shares in Celtic at 2p per share, the par price. They will be partly paid (0.5p per share) and the balance is payable on or before October 11th. It may then subscribe for an additional 4.5 million at the same price. At that stage it is expected to seek board representation.

Redhaven also has an option to purchase 5.5 million Celtic shares which are held by Dragon Oil, provided the purchase does not require Redhaven to make a bid for Celtic. These shares would bring Redhaven's stake up to 39 per cent. That would require a bid for the remainder unless Celtic got a waiver, or if Celtic were to issue more shares in the meantime.