Celtic Resources is to make a partially underwritten open offer to shareholders on the basis of four ordinary shares at 6p per share for every three ordinary shares held. The shares last traded at 10p in early April, so the offer is at a heavy discount.

Under the offer, an additional 29 million new ordinary shares will be issued to existing shareholders.

Celtic expects to raise up to a maximum of $2.5 million (£1.79 million) under the offer. The company says the funds will be used to finance accelerated testing programmes and mine upgrades at the gold mining project at Nezhdaninskoye in the Russian far east. Celtic has a 50 per cent stake in the project.