Norseman Gold Regulatory News (NGL)

10 Jan 2007 07:01

Davos Resources PLC10 January 2007 10 January 2007 Davos Resources Plc ("Davos" or the "Company") Potential Acquisition of Central Norseman Gold Corporation Limited Davos is pleased to announce that it has entered into a Share Sale Agreement ("SSA") with Croesus Mining NL (An ASX listed company) ("Croesus") for thepurchase of the Croesus subsidiary company, Central Norseman Gold CorporationLimited ("CNGC"). CNGC owns and operates Australia's longest operating gold mine in Norseman,Western Australia. Croesus and CNGC appointed administrators on 23 June 2006following operational problems at the mine and hedging debts, however,operations at the Norseman mine have continued during the course of theAdministration and the Administration will cease on or before completion of theSSA. The purchase consideration for CNGC will be Aus$66 million plus the assumptionof liabilities totalling Aus$4.81M. This consideration will be payable in theform of both cash and convertible notes. The SSA is conditional upon the creditors of CNGC agreeing to vary the CNGC Deedof Company Arrangement to facilitate the sale; Foreign Investment Review Boardof Australia ("FIRB") approval; and, as the acquisition will constitute areverse transaction under the AIM Rules, the approval of Davos shareholders. Davos has paid Aus$8.00 million cash deposit and agreed to issue and allotordinary shares with a value of Aus$2.00 million as part of the SSA. Subject toCNGC creditor approval and FIRB approval, this deposit will becomenon-refundable. The Aus$8.00 million cash deposit was funded via a placing of 65,400,000ordinary shares of Davos for 5 p each to institutional investors. A further announcement will follow to provide details of this transaction andthe company has requested and been granted a suspension of trading in itsordinary shares pending publication of a circular to shareholders containingdetails of the acquisition. This information is provided by RNS The company news service from the London Stock Exchange