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. Last Updated: 07/27/2016

Celtic Gets Takeover Approach

Shares in London-listed miner Celtic Resources rose 12 percent Tuesday after the company said it had received a preliminary approach that might lead to a takeover offer.

Analysts in Russia said miner and steelmaker Severstal, which last month bought a 22 percent stake in Celtic Resources for an undisclosed sum in cash, was the most likely -- but not the only -- possible suitor.

"Given it already holds 20 percent plus, I don't think anyone else would want to step in and fight for this asset," said Sergei Donskoi, metals analyst at Troika Dialog.

Celtic Resources, which owns gold and molybdenum mines in Kazakhstan and a copper-gold deposit in Russia, did not identify the party that made the approach and said it would make a further announcement in due course.

"It's very early days," managing director Kevin Foo said. "This 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."

A spokesman for Severstal Resurs, which manages Severstal's mining operations, declined to comment on Celtic's announcement.

Severstal was not the only possible bidder, analysts said.

Barrick Gold, the world's largest gold miner, already owns 6.6 percent of Celtic Resources and one analyst said copper miner Kazakhmys, which this month purchased Eurasia Gold, could be seeking more gold in Kazakhstan.