A GEOLOGICAL exploration company based in the Malvern area wants to buy out its joint venture partner in the exploitation of a Greek goldfield.

Mathon-based Greenwich Resources proposes to purchase Kyprou Gold Ltd, a wholly-owned subsidiary of Danae Resources NL.

Greenwich and Danae, an Australian company, have been working together to develop gold mines near Sappes, in Thrace, north-eastern Greece.

Greenwich is proposing to raise £3.3 million to finance the buy-out with a subscription and rights issue. The proposals will be discussed at an extraordinary general meeting of Greenwich on Monday, December 10, at 10am. The merger is being proposed because directors say the gold mining "can be undertaken more efficiently by a single entity".

The Sappes project will involve the development of an underground mine on the high-grade Viper orebody, which lies between 200-250 metres underground, and an open cast mine to exploit the Demetrios orebody. The mines are expected to yield 560,000 ounces of gold and 3,225 tonnes of copper over five years.

In August this year, an environmental impact study was submitted to the Greek government. Only once this is approved can the mine project go ahead.