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Creon Resources PLC (AMED)

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Thursday 20 September, 2012

Creon Resources PLC

Appointment of Non-executive Chairman

RNS Number : 7207M
Creon Resources PLC
20 September 2012

For Immediate Release

20 September 2012

Creon Resources Plc


("Creon" or "the Company")


Appointment of Non-executive Chairman


The Company is pleased to announce the appointment of Mr Ghanim Bin Saad Al Saad Al Kuwari ("Mr Ghanim Al Saad") to the board of the Company as Non-Executive Chairman.

Mr Ghanim Al Saad, aged 48, is the founder of Ghanim Bin Saad Al Saad & Sons Group Holdings (GSSG) which is one of Qatar's most successful private sector business groups with investments in more than 40 companies around the world operating in the fields of aviation, maritime, automobiles, oil & gas, real estate, manufacturing, finance & asset management, engineering, education, fitness, hotels and hospitality, information technology and telecommunications.

Until earlier this year, Mr Ghanim Al Saad was Managing Director of Qatari Diar Real Estate Investment Company, which was established in 2005 by the Qatar Investment Authority, the sovereign wealth fund of the State of Qatar.  

Mr Ghanim Al Saad is a director and the principal shareholder of Qatar Investment Corporation ("QIC") which, as announced on 11 July 2012, owns 1,994,827,672 ordinary shares of 0.1p each in the Company, representing 72.84% of the issued Ordinary Share capital of the Company.


Glen Lau, CEO of Creon, commented: "We are delighted that a businessman of international repute such as Mr Ghanim Al Saad has agreed to join our board as Chairman. We look forward to working closely with him on our investment projects and to his contribution to the continued growth and development of the Company".



Confirmation of Mr Ghanim Al Saad's appointment is subject to routine due diligence to be carried out by the Company's Nominated Adviser, Daniel Stewart & Company. Confirmation of Mr Ghanim Al Saad's appointment will be announced at the earliest opportunity.



- Ends -


For further information please contact:


Creon Resources plc

Glen Lau - CEO

Tel: + 44 (0) 20 7583 8304


Daniel Stewart & Company plc

Nominated Adviser & Broker

Paul Shackleton/Tessa Smith

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.


This information is provided by RNS
The company news service from the London Stock Exchange

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