MONCTON, NB, Sept. 6 /CNW/ - Major Drilling Group International Inc.
(TSX: MDI) ("Major Drilling" or the "Company") is pleased to announce that,
through its wholly owned Chilean subsidiary, it has signed an agreement to
purchase the exploration drilling company Harris y Cia Ltda. ("Harris").
Through this purchase Major Drilling will acquire 11 drills rigs, all of
which are currently committed to work on a double shift basis conducting
mainly specialized drilling in the active northern region of Chile. In
addition, the acquisition involves all support equipment and inventory, as
well as the Antofagasta office and repair facilities owned by Harris. This
acquisition provides attractive synergies to assist the Company in fulfilling
its strategy of fully servicing the Chilean specialized drilling market.
Subsequent to the acquisition Major Drilling will have a total fleet of 35
drill rigs in Chile, and the similarity of the Harris and Major Drilling rigs
will produce operational efficiencies.
As part of this acquisition Major Drilling is also acquiring Harris'
existing contracts and retaining key management personnel, as well as other
employees, including a number of experienced drillers.
The purchase price for the transaction is US$22.7 million, subject to
customary working capital adjustments, to be financed with cash and debt.
Francis McGuire, President and CEO of Major Drilling, stated "We are very
pleased to welcome Harris Drilling and its employees into the Major Drilling
group. Harris has been operating in Chile since 1981, and has an excellent
reputation with its clients. This acquisition provides us with additional
assets, experienced drillers and existing contracts in Chile. We anticipate
that the operations of Harris will produce additional revenues of
approximately US$11 million for the balance of our fiscal year, ending April
30, 2008. "
The transaction is expected to close by mid-September.
Some of the statements contained in this press release may be
forward-looking statements, such as estimates and statements that describe or
are with respect to the future price of minerals and metals, the Company's
future plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition to exist or occur. Since
forward-looking statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Actual results in each
case could differ materially from those currently anticipated in such
statements by reason of factors such as, but not limited to, the factors set
out in the discussion starting on pages 19 to 22 of the 2007 Annual Report
entitled "General Risks and Uncertainties", as filed with the Canadian
Securities Commission (available on SEDAR at www.sedar.com). All such factors
should be considered carefully when making decisions with respect to the
Company. The Company does not undertake to update any forward-looking
statements, including those statements that are incorporated by reference
herein, whether written or oral, that may be made from time to time by or on
its behalf, except in accordance with applicable securities laws.
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 and mineral exploration
activities, Major Drilling maintains operations in Canada, the United States,
Mexico, South and Central America, Australia, Armenia, Indonesia, Africa and
For further information:
For further information: Denis Larocque, Chief Financial Officer, (506)
857-8636, fax (506) 857-9211, email@example.com