Greenwich shareholders agree to merger with Danae and Buka

Perth-based gold explorer Danae Resources NL's proposed merger with UK-based Greenwich ResourcesPlc and Buka Minerals Ltd gained momentum with Greenwich shareholders in support of the proposed merger.

The shareholders also voted in favour of the takeover offers and Greenwich's underwritten capital raising of £20 million (A$47.2 million) earlier this month.The capital raising was in connection with the proposed merger.

Greenwich, to be renamed Scarborough Minerals plc, lodged its bidder's statement for its off-market takeover offer for all the shares in Buka and Danae earlier this month.

At 1230 WST, shares in Danae were down .1 cents to 6 cents.

Below is the full announcement:

Danae is pleased to report the announcement, in London overnight, of the results of a general meeting of Greenwich's shareholders to approve the Proposed Merger, the Takeover Offers, the Capital Raising and a number of related matters.

The resolution was passed with more than 99% of votes cast in support of the proposals (including proxies under which the chairman of the meeting had discretion).

The passing of the resolution confirms that the new name of Greenwich, and of the Enlarged Group arising from its merger with Danae and Buka will be Scarborough Minerals plc (Scarborough). Together with the successful Capital Raising, which will see #22 million (approximately A$54 million) raised (before costs) in a Placing and Open Offer by Scarborough as announced earlier this month, this means that the only remaining substantive issue to completing the Proposed Merger of the three companies is the successful completion of the Takeover Offers for Danae and Buka.

Offer Acceptances
As of 27 March 2006, acceptances had been received in respect of:

Number Percent
Danae Ordinary Shares 66,004,399 81.85%
Buka Ordinary Shares 63,344,092 33.79%
Danae Class A Preference Shares 22,345,000 100.00%
Danae Class B Preference Shares 3,500,000 100.00%
Danae Options 28,500,000 100.00%

Directors' Recommendation
As no superior offer has emerged and it is now unlikely that one will, each of Danae's Directors recommends that shareholders accept the offers now for the reasons set out in Danae's Target's Statement.

The offers remain open until 7 April 2006, unless extended. This date is fast approaching and shareholders are encouraged to act immediately if they wish to accept the Offer for their Danae Shares.