MONCTON, NB, Oct. 25 /CNW/ - Major Drilling Group International Inc.
(TSX: MDI) ("Major Drilling" or the "Company") is pleased to announce that,
through its wholly owned Ecuador subsidiary, it has acquired the assets of the
exploration drilling company Paragon del Ecuador S.A. ("Paragon").
Paragon is the largest mineral exploration drilling contractor in
Ecuador, operating seven drill rigs. In addition to the rigs, this acquisition
involves support equipment and inventory, existing contracts, and personnel.
Subsequent to this acquisition Major Drilling now has a total of nine drill
rigs in Ecuador.
The purchase price for the transaction was US$6 million, subject to
Francis McGuire, President and CEO of Major Drilling, stated "We are very
pleased to welcome Paragon drilling and its employees into the Major Drilling
group. This acquisition provides us with additional assets, experienced
drillers and existing contracts in Ecuador. We anticipate that the operations
of Paragon will produce additional revenues of approximately US$3.6 million
for the balance of our fiscal year, ending April 30, 2008. "
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