Gold News

Celtic Resources hints at takeover

Investing in gold was yesterday given another boost as shares in London-listed mining company Celtic Resources PLC rose on news of a potential takeover.

Reporting a near-on ten per cent rise in share prices on Tuesday, the mining group would not disclose who had targeted it for takeover, but according to Reuters, Russian analysts had identified miner and steel-maker Severstal as the most likely candidate.

Severstal last month bought a 22 per cent stake in Celtic Resources for an unknown price, fuelling concerns that the Russian company could be seeking more, while copper miner Kazakhmys was also a name rumored to be seeking further operations in the area, alongside Canadian firm Barrick Gold.

Barrick is the world's largest gold mining firm, already owning 6.6 percent of Celtic Resources and claimed by some to be seeking further involvement with the company, who owns three operating fold mines in Kazakhstan.

"It's very early days," managing director of Celtic Resources Kevin Foo told Reuters, adding that the unknown group "may get serious and do something, or they may go away and then this will turn out to be a storm in a teacup".

The jury remains out then on what the future holds for Celtic Resources, but for the time being the mining company can enjoy the wider boom in gold investment which saw its stocks shoot up yesterday.

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