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Update to the acquisition of Central Norseman Gold Corporation Limited and associated fundraising

26 February 2007

Davos Resources PLC
26 February 2007

                              DAVOS RESOURCES PLC



                                 AIM Code: DVRS



   Update to the acquisition of Central Norseman Gold Corporation Limited and
                             associated fundraising



                                 Board changes



                          Appointment of Joint Broker



26 February 2007


Highlights of the Acquisition

O                  Davos is acquiring Australia's longest continually running
gold operation which has produced in excess of 5.5 million ounces of gold since
1937

O                  Production is currently sourced from two underground mines
and processed through a CIL processing plant with a capacity of approximately
700,000 tonnes per annum

O                  The tenements being acquired cover a total area of 689 km2
and are considered to have excellent exploration potential

O                  The total consideration for the acquisition is A$66 million
plus the assumption of bonds and guarantees of approximately A$5 million. A$44
million is payable in cash of which A$8 million has already been paid as a non
refundable deposit.  Davos has engaged Ocean Equities Ltd to raise the requisite
funds and provide working capital for the Company



Introduction

Further to the announcement on 10 January 2007 in relation to the conditional
acquisition of Central Norseman Gold Corporation Limited ('CNGC') from Croesus
Mining NL ('Croesus') ('the Acquisition'), Davos Resources Plc ('Davos' or 'the
Company') through its wholly owned subsidiary, Davos Gold Pty Ltd ('Davos Gold')
is pleased to provide further information on the proposed acquisition.



Background Information on CNGC

CNGC is the owner of the Norseman Gold Mine which is located approximately 725km
east of Perth, Western Australia, and is midway between Kalgoorlie and
Esperance.  The Norseman Gold Mine lies at the southern extent of the
Norseman-Wiluna Greenstone Belt of the Eastern Goldfields Province of the
Yilgarn Block.

Gold was first found on the Norseman field in 1894 and CNGC was established in
1937. It is Australia's longest continuously running gold mining operation
having produced gold for over 65 years and the Norseman field itself has
produced over 5.5 million ounces of gold.


CNGC was acquired by Croesus in January 2002, following its sale by Western
Mining Corporation.  It was subsequently placed into administration in June 2006
following a period where the operations were generating significant losses
exacerbated by hedge book commitments that CNGC was unable to meet.  Mining
operations at the Norseman Gold Mine have continued during the period of
administration.


The Norseman Project is currently producing gold from two high-grade underground
gold mines and has an excellent portfolio of advanced exploration opportunities
to support future production.


The highly prospective land holding of 689km(2) contains key strategic
infrastructure within the Norseman region including a 700,000 tonnes per annum
CIL treatment plant, administration offices, Single Persons' Quarters and
housing within the Norseman townsite.  The Norseman Project is well serviced
with power, water and access via the sealed Kalgoorlie-Esperance Highway.  The
operation currently has approximately 200 employees and contractors.


Terms of the Acquisiton


Davos has agreed to acquire CNGC for a total consideration of A$66 million plus
the assumption of Department of Industry and Resources performance bonds and
guarantees totaling approximately A$5 million.


The consideration comprises:


1.      A deposit of A$8 million, which was paid by Davos to the Administrators
of Croesus on 9 January 2007;

2.      An additional cash payment of A$36 million payable in cash on completion
of the Acquisition;

3.            The issue of new ordinary shares in Davos with a value of A$2
million at the price at which the proposed placing referred to below is
undertaken, being approximately 8 million ordinary shares at 10p per share; and

4.      The issue of 7% convertible loan notes in the principal sum of A$20
million which will be repayable in four equal tranches annually from 2008 to
2011 or convertible into new ordinary shares in Davos in four equal tranches
annually from 2008 to 2011 at prices of 20p, 25p, 35p and 50p respectively.

The deposit that has been paid by Davos is non-refundable, save in the event
that the creditors of CNGC fail to approve the Acquisition. The creditors'
meeting is scheduled for 28th February 2007.

The Acquisition is conditional on the approval of Davos shareholders.

Under the terms of the Acquisition, Davos is required to pay an additional cash
amount of A$36 million and complete the transaction by 31 March 2007.  Davos
may, at its election, extend this deadline to 30 April 2007 by making an interim
non-refundable payment of A$5 million (which the Company intends to raise
through a further placing and/or borrowing) and demonstrating to the
Administrators of Croesus that it has procured irrevocable subscription
agreements for a minimum of A$31 million and irrevocable proxies in favour of
the acquisition by Davos shareholders for the shareholders meeting to inter alia
approve the acquisition.

Pursuant to the Acquisition and subject to completion of the Acquisition further
ordinary shares and options will be issued as follows:

•        30 million new ordinary shares will be issued to Directors and
management

•        25 million new ordinary shares will be issued to a consortium ('
Consortium') which introduced and assisted the Company with the acquisition

•        11 million options will be issued to senior executives including Barry
Cahill. The options will be exercisable for a period of 3 years at 10p per share

•        10 million employee options (currently unallocated) exercisable for a
period of 3 years at 10p per share

Following completion of the Acquisition all the Directors, Management and
Consortium will be subject to a 2 year lock-in on their new ordinary shares (in
addition to any applicable AIM rule lock-in requirements). In addition, all the
options issued to Directors, Management will be subject to a lock-in in year 1
and orderly market arrangement in year 2.


Financing of the Acquisition

In early January 2007, Davos raised a total of £3,072,000 through a private
placement of 61,440,000 new ordinary shares at a price of 5p per ordinary share.
  Interests associated with David Steinepreis, Chairman of Davos, subscribed
for, and were issued, 3,000,000 ordinary shares.

On 22 February 2007, the Company raised an additional £1,439,000 million through
the issue of 28,780,000 additional new ordinary shares at a price of 5p per
ordinary share.

Application will be made for these new ordinary shares to be admitted to trading
on AIM.


Following these subscriptions, Mr Steinepreis and his associated parties had an
interest of 6,100,000 ordinary shares representing approximately 4.1 per cent.
of the Company's issued share capital.


The Company has engaged Ocean Equities Limited to raise an additional £24
million at 10p per ordinary share for the Acquisition and to provide working
capital for the Company.


Proposed changes to the Board

It is proposed that Mr Barry Cahill, current Operations Manager at the Norseman
Project and acting on behalf of the Administrator, and Mr Vince Pendal, will
join the Board of Davos following the completion of the Acquisition.


Barry Cahill - Proposed Chief Executive Officer

Barry Cahill is a mining engineer with over 20 years experience in operational
mining and management throughout Australia. He has had extensive experience in
the management of underground and open pit mines as both a mining contractor and
an operator, including the Leinster nickel mine and the Broken Hill base metal
mine. His area of expertise has an emphasis on the recovery of poorly performing
operations to a profitable standard particularly in narrow vein underground
mines. Barry Cahill has been an executive director of a number of public
companies including managing director of Australian Mines Limited, a company
listed on the ASX. He is a member of the Australasian Institute of Mining &
Metallurgy and a member of the Australian Institute of Company Directors.


Vince Pendal - Proposed Chairman

Vincent Pendal has extensive experience in banking and corporate finance in both
the industrial and mining sectors in Australia. He is currently the chairman of
Brandrill Ltd, a company listed on the ASX, and a director and a major
shareholder of Oakvale Capital Ltd, a company registered in Australia, which
provides independent advice on financial risk management to a range of leading
companies, government authorities and institutions throughout Australia. During
the past five years he also served as Chairman of Austral Coal Limited and
Perilya Limited, companies listed on the ASX. He is a foundation/life member of
the Kalgoorlie Mining Hall of Fame.


Mr Scott Spencer has resigned as Non-Executive Director with immediate effect.


Appointment of Joint Broker

Davos is also pleased to announce the appointment of Ocean Equities Limited as
Joint Broker to the Company with immediate effect.


Change of Name

Davos proposes, subject to shareholder approval, to change its name to Norseman
Gold Plc.


Timetable

It is intended that a new admission document, which will contain a Competent
Persons Report by RSG Global on the Norseman Mine and a Notice of Extraordinary
General Meeting of shareholders, will be sent to the Company's shareholders in
April 2007, setting out details of, and seeking approval for, the Acquisition
the Proposed Placing and change of name to Norseman Gold Plc.


Contacts:

David Steinepreis          Davos Resources Plc               07913 402727
(U.K.)

Olly Cairns                Corporate Synergy Plc             020 7448 4400

Guy Wilkes                 Ocean Equities Ltd                020 7786 4370


Notes:


The information in this announcement as it relates to geology, geochemistry and
geophysics, has been prepared and reviewed by Barry Cahill who is a Competent
Person as described in Part two of the AIM Guidance Notes for Mining, Oil and
Gas Companies.


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