/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
MONCTON, NB, Sept. 28, 2011 /CNW/ - Major Drilling Group International
Inc. ("Major Drilling" or the "Corporation") (TSX: MDI) is pleased to announce that it has closed its prospectus
offering of subscription receipts ("Subscription Receipts"). The Corporation issued a total of 5,900,000 Subscription Receipts at
a price of $11.90 per Subscription Receipt for aggregate gross proceeds
of $70,210,000 (the "Offering").
The Offering was underwritten by a syndicate of underwriters led by TD
Securities Inc. that included Scotia Capital Inc., CIBC World Markets
Inc., RBC Dominion Securities Inc., Beacon Securities Ltd., Jennings
Capital Inc. and Salman Partners Inc. (collectively, the "Underwriters").
Major Drilling intends to use the net proceeds of the Offering to fund a
portion of the purchase price of $80 million (subject to adjustments)
payable in connection with its previously announced acquisition of
Bradley Group Limited, a drilling company based in Rouyn Noranda,
Quebec (Canada) (the "Acquisition").
Closing of the Acquisition is expected to occur on or about September
30, 2011, subject to the satisfaction or waiver of remaining customary
closing conditions. Upon the closing of the Acquisition, each
Subscription Receipt will be exchanged for one common share of the
Corporation without payment of additional consideration or further
action on the part of the holder thereof.
About Major Drilling
Based in Moncton, New Brunswick, Major Drilling Group International Inc.
is one of the world's largest metals and minerals contract drilling
service companies. To support its customers' mining operations, mineral
exploration and environmental activities, Major Drilling maintains
operations in Canada, the United States, South and Central America,
Australia, Asia, and Africa.
This press release contains forward-looking information within the
meaning of applicable securities laws. All information and statements
other than statements of historical facts contained in this press
release are forward-looking information. These statements are
"forward-looking" because they are based on current expectations,
estimates, assumptions, risks and uncertainties. These forward-looking
statements are typically identified by future or conditional verbs such
as "expect" and "intend" and terms and expressions of similar import.
Such forward-looking information includes, without limitation,
statements with respect to: the anticipated closing of the Acquisition
and the anticipated use of proceeds of the Offering. Actual events or
results may differ materially.
The forward-looking information is based on certain key expectations and
assumptions made by the Corporation, including expectations and
assumptions concerning satisfaction of all conditions of closing of the
Acquisition and absence of exercise of any termination right. Although
the Corporation believes that the expectations and assumptions on which
such forward-looking information is based are reasonable, undue
reliance should not be placed on the forward-looking information since
no assurance can be given that they will prove to be correct.
Since forward-looking information addresses future events and
conditions, by its very nature it involves inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, the failure to close the Acquisition.
Readers are cautioned that the foregoing is not exhaustive.
The forward-looking information contained herein is expressly qualified
in its entirety by this cautionary statement. The forward-looking
information contained herein is made as of the date of this press
release, and the Corporation undertakes no obligation to publicly
update such forward-looking information to reflect new information,
subsequent or otherwise, unless required by applicable securities laws.
All dollar values are quoted in Canadian dollars unless otherwise
THIS NEWS RELEASE IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED
STATES AND IS NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY
ANY SECURITIES OF MAJOR DRILLING, NOR SHALL IT FORM THE BASIS OF, OR BE
RELIED UPON IN CONNECTION WITH ANY CONTRACT FOR PURCHASE OR
SUBSCRIPTION. THE SUBSCRIPTION RECEIPTS ARE ONLY OFFERED IN CERTAIN
PROVINCES OF CANADA BY MEANS OF THE PROSPECTUS REFERRED TO ABOVE.
SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT
REGISTRATION UNDER THE U.S. SECURITIES ACT OR AN EXEMPTION FROM
REGISTRATION THEREUNDER. THE SUBSCRIPTION RECEIPTS HAVE NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OR THE SECURITIES
LAWS OF ANY STATE AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES
ABSENT REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION THEREFROM.
SOURCE MAJOR DRILLING GROUP INTERNATIONAL INC.
For further information:
Denis Larocque, Chief Financial Officer
Tel: (506) 857-8636
Fax: (506) 857-9211