31 Jul 2012 12:23
For Immediate Release: 31 July 2012
Creon Resources Plc
("Creon" or "the Company")
RESULT OF ANNUAL GENERAL MEETING
The Directors of Creon Resources Plc (AIM: CRO) are pleased to announce that all resolutions were duly passed at the Company's Annual General Meeting, held today at the Company's registered office at 201 Temple Chambers, 3-7 Temple Avenue, London EC4Y 0DT.
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For further information please contact:
Creon Resources plc | |
Jeswant Natarajan
| Tel: + 60 12 212 1332 |
Daniel Stewart & Company plc | |
Nominated Adviser & Broker | |
Paul Shackleton
| 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 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). Creon will invest US$15.33 million, with YZJ Holdings and its associates investing 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.
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.