5 Oct 2012 12:11
For Immediate Release 5 October 2012
Creon Resources Plc
("Creon" or "the Company")
Directorate Changes
The Company is pleased to announce that following routine due diligence checks carried out by the Company's Nominated Adviser, Daniel Stewart, Mr Ghanim Bin Saad Al Saad Al Kuwari's ("Mr Ghanim Al Saad") appointment to the board as Non-executive Chairman of the Company, which was announced on 20 September 2012, has now been confirmed.
Mr Ghanim Al Saad, aged 48, currently holds, and has held (including all appointments during the five years preceding the date of this announcement), the following directorships and partnerships, other than of the Company:
Current Directorships/Partnerships | Past Directorships/Partnerships (in the last 5 years) |
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Barwa Capital (United Kingdom) Limited Barwa Real Estate Thoresen Thai Agencies (Public) Co Ltd Al Ritaj Investment Company Qatari Diar (United Kingdom) Limited Qatar Investment Corporation Qatari Diar Asia Pacific Ltd Qatari Diar Real Estate Investing Company Ghamin Foundation
| Qatar Project Management Company Al Imtiaz Investment Company A'ayan Real Estate Al Jazeera Academy Rizon Jets Jersey Group GSSG Group Al Baraka Banking Group Rizon Group Holdings First Finance Company First Real Estate Company Qatar Ag
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Save for the above and information detailed in the announcement of 20 September 2012, there is no further information to be disclosed under Rule 17, Schedule 2 (g) of the AIM rules.
For further information please contact:
Creon Resources plc | |||
| Tel: + 44 (0) 7833 461 142 | ||
Nominated Adviser & Broker | |||
Paul Shackleton/James Felix | Tel: + 44 (0) 20 7776 6550 | ||
GTH Communications Limited | |||
Toby Hall/Suzanne Johnson-Walsh | Tel: + 44 (0) 20 3103 3900 |
About Creon Resources plc
The Company's Investment Policy is to invest principally but not exclusively in the resources and/or resources infrastructure sectors, with no specific national or regional focus. The Company may be either an active investor and acquire control of a single company or it may acquire non-controlling shareholdings.
Investments made by the Company may be either quoted or unquoted; made by direct acquisition or through farm-ins; may be in companies, partnerships, joint ventures; or direct interests in resources projects. Target investments will generally be involved in projects in the exploration and/or development stage. The Company's equity interest in investments may range from a minority position to 100 per cent. ownership.
On 17 July 2012, the Company entered into a joint venture with multi-billion dollar, Singapore listed, China based shipbuilding giant, Yangzijiang Shipbuilding (Holdings) Pte Ltd ("YZJ Holdings"), in the offshore oil and gas infrastructure sector ("JV Agreement"). This joint venture with YZJ Holdings is Creon's first significant investment under its Investment Policy and represents a major endorsement of Creon's management and access to expertise and partners in the oil and gas infrastructure sector.
Under the terms of the JV Agreement, Creon and YZJ Holdings will each invest into the joint venture company, YZJ Offshore Engineering Pte Ltd ("YZJ Offshore"), a Singapore registered company recently set up by YZJ Holdings to be a leading player in the design and construction of marine offshore oil and gas vessels (jack-up and semi-submersible rigs). To date, Creon has invested US$15.33 million, with YZJ Holdings and its associates having invested a further US$14.67 million, into YZJ Offshore.
YZJ Offshore will provide marketing, procurement, front end engineering and design, and management consultancy services for the construction, fabrication and repair of oil and gas marine vessels and platforms.
The Directors believe that the offshore marine rig vessel market is an attractive one, underpinned by sustained high global demand and a high oil price environment. Global rig utilisation rates and day rates have been rising since early 2011, particularly for jack-up rigs. Furthermore, the Directors believe demand for newly designed rigs will be underpinned by the phasing out of the existing stock of rigs. The Directors understand that by the end of 2012, the average age of jack-up rigs will be 24 years, with almost half of the fleet older than 30 years. Based on the current stock and new rig builds in the pipeline, there could be an under supply by almost 200 jack-up rigs by 2020.The Directors believe that this potential demand represents an excellent opportunity for the joint venture.
Lease rates for "floater" structures which drill in deep water; e.g. semi-submersibles and drill ship vessels, have been increasing in recent times as there is increasing demand for such vessels as huge reserves are being discovered and developed in deeper water.
YZJ Offshore is currently pursuing opportunities to build such vessels for prospective clients and is optimistic of securing orders in the near future.
The majority of the funds invested into YZJ Offshore to date have gone towards securing land rights to approximately 1.6 million square metres of prime shorefront land in Taicang, Jiangsu Province on China's east coast, some 50 miles north of Shanghai. The total cost of the land will be approximately US$65 million. Creon has the option, but not the obligation, to provide additional funding to YZJ Offshore.