VAL-D'OR, QC, Oct. 14 /CNW/ - Orbit Garant Drilling Inc. (TSX: OGD) today
announced the acquisition of Forage+. Under terms of the transaction, Orbit
Garant has purchased all of the issued and outstanding shares of 9129-5632
Quebec Inc., doing business as Forage+, a specialized drilling company
operating seven drilling rigs. As part of the transaction, Orbit Garant is
acquiring a 100,000-metre drilling services contract with Osisko Mining Corp.
(TSX:OSK), a Forage+ customer.
The purchase price consists of $1.5 million in cash and 457,142 payable
in common shares of Orbit Garant representing an aggregate amount of $1.6
million, issued at an allocated value of $3.50 per share and the payment
amount of $624,456 to the Vendors in order to compensate for the difference
between the 30-day average trading price of $2.134 per share and the allocated
value of $3.50 per share.
The parties have agreed to a contractual escrow agreement with a release
period of over 30 months. Larry Belanger, CEO of Forage+, has entered into a
12-month employment contract with Orbit Garant.
"We expect this transaction to be immediately accretive and to generate
approximately $2.6 million in incremental EBITDA over the next 12 months,"
said Eric Alexandre, President and Chief Operating Officer. "This strategic
acquisition will further leverage our established infrastructure, expand on
our already strong market position of specialty drilling in the Abitibi region
of Quebec, and bring the company an important new customer."
Osisko hold a 100 per cent interest in the Canadian Malartic gold deposit
in the Abitibi region of Quebec, Canada. On September 8, 2008, Osisko filed an
initial NI 43-101-compliant resource estimate for the main deposit, with a
gold resource of 7.69 million ounces in the Measured & Indicated category and
720,000 ounces in the Inferred category.
Eric Alexandre added, "Completion of the drilling program at the Canadian
Malartic gold deposit will require the use of additional specialized drills.
Through our manufacturing subsidiary, Soudure Royale, Orbit Garant is very
well positioned to meet this need."
About Orbit Garant
Orbit Garant is one of the largest Canadian-based drilling companies,
providing both underground and surface drilling services in Canada and
internationally through its 119 drills and approximately 500 employees. Orbit
Garant provides services to major, intermediate and junior mining companies,
through each stage of mining exploration, development and production.
This press release may contain forward-looking statements (within the
meaning of applicable securities laws) relating to business of Orbit Garant
Drilling Inc. (the "Company") and the environment in which it operates.
Forward-looking statements are identified by words such as "believe",
"anticipate", "expect", "intend", "plan", "will", "may" and other similar
expressions. These statements are based on the Company's expectations,
estimates, forecasts and projections. They are not guarantees of future
performance and involve risks and uncertainties that are difficult to control
or predict. These risks and uncertainties are discussed in the Company's
regulatory filings available at www.sedar.com. There can be no assurance that
forward-looking statements will prove to be accurate as actual outcomes and
results may differ materially from those expressed in these forward-looking
statements. Readers, therefore, should not place undue reliance on any such
forward-looking statements. Further, a forward-looking statement speaks only
as of the date on which such statement is made. The Company undertakes no
obligation to publicly update any such statement or to reflect new information
or the occurrence of future events or circumstances.
For further information:
For further information: Eric Alexandre, President and Chief Operating
Officer, (819) 824-2707 Ext. 233; Philip Koven, Investor Relations, (416)
447-4740 Ext. 235