MONCTON, NB, July 30 /CNW/ - Landdrill International Inc. (TSX.V:LDI)
("Landdrill" or the "Company") is pleased to announce that through its wholly
owned Canadian subsidiary, it has acquired the assets of the exploration
drilling company Forages M. Lafreniere Inc. ("FML").
FML is a Nedelec, Quebec based mineral exploration drilling contractor,
operating seven drill rigs in Quebec and Ontario. LDI is acquiring all
drilling equipment, support equipment and vehicles, inventory, existing
contacts, and personnel. FML's un-audited internal financial statements
reported revenues of over $15 million for the 11 months ended May 31, 2008.
After this acquisition LDI will have a total of 12 drill rigs for their
Ron Goguen, President & CEO of Landdrill, stated "We are excited to add
the experience and expertise of the FML team to the Landdrill family. FML has
over 15 years of drilling experience and over this time they have developed a
high quality reputation for their services. The addition of their 7 drills to
our 5 drills gives us a real presence in the Eastern Canadian mineral drilling
The purchase price of $5.4 million was financed from a $3.7 million
senior equipment loan and a $2.0 million non-brokered private placement.
The private placement consists of convertible debentures in principal amount
equal to the subscription price, maturing in one year, that bear interest at a
rate of 18% per annum and are convertible to common shares of the Company at
the rate of one common share for $0.45 of principal amount converted.
The subscribers also received 10% of their subscription price in common
shares, converted at $0.40 per common share. No finder's fee will be payable
in connection with this private placement. The Offering was not qualified for
sale to the public by way of prospectus, therefore all securities issued in
connection with the Offering will be subject to a four-month hold period in
Canada, expiring November 30, 2008. Insiders have participated in this private
placement for the aggregate amount of $350,000.
Landdrill is a growth oriented international drilling company with a
focus on the metals and minerals industry. The Company continues to explore
opportunities for growth in key markets, either through establishment of new
branch offices or through acquisitions as opportunities arise. The Company now
has 31 drills operating in Canada, Mexico, Russia and Mongolia.
For detailed information on Landdrill International Inc., or to request a
bid submission for your project worldwide, please visit our website at
Caution Concerning Forward Looking Statements
This press release includes certain statements that would be deemed
"forward-looking statements". These statements are "forward-looking" because
they are based on current expectations, estimates and assumptions about the
markets the Company operates in, the world economic climate as it relates to
the mining industry, the Canadian economic environment and the Company's
ability to attract and retain customers and to manage its assets and costs.
Actual results could differ materially from expectations if known or
unknown risks affect the business, or if estimates or assumptions turn out to
be inaccurate. The Company does not guarantee any forward-looking statement
will materialize and, therefore, investors are cautioned not to place reliance
on these forward looking statements. The Company disclaims any intention to
update or revise any statement of forward-looking information whether as a
result of new information, future events or otherwise.
On behalf of the Board of Directors,
Ronald Goguen Sr.
President and Chief Executive Officer
Landdrill International Inc.
(506) 388 - 8961
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information:
For further information: Ronald Goguen Sr., President and Chief
Executive Officer, Landdrill International Inc., (506) 388-8961