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TORONTO and MARSEILLE, France, June 16 /CNW/ - Foraco International SA (the "Company" or "Foraco"), a leading global provider of diversified drilling services, today announced it has fully completed the acquisition of a 50% controlling interest in LLC Eastern Drilling Company ("EDC") from Russia.
EDC has operated diamond drilling services for major and junior foreign and Russian companies in the mining industry in the Russian territory since 2007. Headquartered in Moscow, EDC's operational facilities are located in Far East Russia and Eastern Siberia where many mining developments are located or managed.
"Following our successful launch into northwest Russia in 2009, we are pleased to have now established a permanent presence in Russia and the CIS countries," said Daniel Simoncini, Chairman and Chief Executive Officer of Foraco. "This deal is significantly increasing our growth potential in the region. We also foresee global opportunities through providing continued services to our Russian-based customers when they operate in other jurisdictions."
"It is gratifying to see Foraco close two important acquisitions in a matter of weeks that strengthen our global footprint - first in Latin America with the Adviser acquisition, and now, in Russia with EDC. We are expecting EDC to generate approximately US$10 million revenue in 2010 from its existing customer contracts" said Jean-Pierre Charmensat, co-CEO and Chief Financial Officer added.
EDC's fleet consists of six modern diamond drill rigs and ancillary equipment, supported by skilled managers and workers.
EDC's founders and present managers will retain a 50% (non-controlling) interest and will continue managing and developing EDC. Foraco will bring new drilling technologies, management, technical, financial and operational support to EDC and will support EDC's development.
About Foraco International SA
Foraco International SA (TSX: FAR) is a global leading drilling services company that provides turnkey solutions for mining, energy, water and infrastructure projects. Supported by its founding values of integrity, innovation and involvement, Foraco has grown into a global enterprise with operations in 19 countries across five continents. For more information about Foraco, visit www.foraco.com.
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Caution concerning forward-looking statements
This document contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws, including the Company's expectations regarding Adviser's revenues. These statements and information include estimates, forecasts, information and statements as to Management's expectations with respect to, among other things, the future financial or operating performance of the Company and capital and operating expenditures. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated March 31, 2009, which is filed with Canadian regulators on SEDAR (www.sedar.com). The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to Foraco or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.
SOURCE Foraco International SA
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