MATHON-based Greenwich Resources is to acquire all of a potentially lucrative gold-mining project in Greece.

But the consolidation between Greenwich and Australian firm Danae Resources will see the retirement of long-time Greenwich chairman Dr Colin Phipps.

At the moment, Greenwich owns 49 per cent of the Sappes mining lease in Thrace, north-east Greece, and Danae Resources has 51 per cent.

In the forthcoming deal, Greenwich will acquire Danae's share of Sappes in exchange for 102,876,236 of Greenwich ordinary shares.

The companies have drawn up detailed plans for an underground mine on the Viper orebody and an open pit at nearby St Demetrios, both within the Sappes field.

Dr David Quick, chief executive officer of Greenwich, said prospects for the Sappes field were good because the ore was so rich in gold.

He said: "The result is that this project will still make money even if the price of gold were to fall."

Danae is the mining arm of Australian construction conglomerate Multiplex, which built the Olympic Stadium in Sydney and is a preferred contractor for the redevelopment of Wembley Stadium.

As part of the deal, Greenwich's board will be restructured to comprise seven directors. John Bovard, of Danae, will take over the chair from Dr Phipps and Danae will appoint two other directors.

Stephen Phipps, Dr Phipps's son, will remain on the board and the Phipps family company will retain a ten per cent shareholding in Greenwich.

Dr Phipps has been chairman of Greenwich Resources since 1989. From 1983 until 1995 he was also chairman of Clyde Petroleum, which was based at Coddington Court.