Greenwich seeks mandate to consolidate Sappes

摘要

UK-based Greenwich Resources plc plans next month to ask its shareholders to approve the deal agreed in April of this year with Danae Resources NL of Australia, in which Greenwich will increase its interest in the Sappes gold project in Greece to 100 percent. Sappes is currently owned 49 percent by Greenwich and 51 percent by Danae, the latter interest held through a wholly-owned subsidiary, Kyprou Gold Ltd. Greenwich will purchase Kyprou from Danae for 102.9 million new shares, such that Danae will end with a shareholding of approximately 30 percent in Greenwich (after taking into account equity financings planned by Greenwich). The executive chairman of Danae, John Bovard, is to become chairman of Greenwich after the deal is completed, and three Danae nominees will be appointed to replace three existing non-executive directors.The financings comprise a pound 2 million placing to certain investors, and an open offer of a similar amount to existing shareholders. Shareholders will also be able to subscribe for additional shares to the extent that other shareholders do not take up their proportional entitlements. Greenwich will also ask shareholders for permission to place any shares not taken up in the offer. The net proceeds are intended to help fund the work programme for Sappes, and to provide the capability to consider other projects. According to David Quick, the chief executive of Greenwich, the company does not intend to be a one-project company.