Major Drilling Announces Purchase of Forage à Diamant Benoit Ltée

    MONCTON, NB, Aug. 1 /CNW/ - Major Drilling Group International Inc.
(TSX: MDI) ("Major Drilling" or the "Company") is pleased to announce that it
has today completed the purchase of the exploration drilling company Forage à
Diamant Benoit Ltée ("Benoit") based in Val-d'Or, Québec (Canada) for an
aggregate purchase price of $21,000,000 (consisting of approximately
$17.5 million in cash and $3.5 million in liabilities) subject to customary
price adjustments.
    Through this purchase Major Drilling has acquired 19 drills rigs, the
majority of which have deep hole capacity and are fitted with rod handlers,
which fits with the Company's strategic focus on specialized drilling. In
addition to the rigs, this acquisition involves support equipment and
inventory, existing contracts, and personnel. Subsequent to the acquisition,
Major Drilling will have a total fleet of 42 mineral exploration drill rigs in
Québec. Management anticipates that the operations of Benoit will produce
additional annual revenue of approximately $26 million and additional EBITDA
of approximately $7 million for the twelve months subsequent to the
    The purchase price is payable, in total, by way of cash consideration
financed through existing credit facilities of the Company, and is subject to
certain holdbacks.
    Francis McGuire, President and CEO of Major Drilling, stated "We are very
pleased to welcome Forage Benoit and its employees into the Major Drilling
group. This acquisition provides us with additional assets, experienced
drillers and existing contracts in Québec. Benoit has operated successfully in
the Quebec/Ontario marketplace for some 40 years, and has a strong reputation
with its clients."
    Mr. McGuire added "We believe that from the perspective of resources and
resource potential, political risk, and financial incentives to the mining
industry, Quebec is one of the best jurisdictions in the world for mining
companies to do business. We remain very optimistic about the continuing
growth potential of this region. Also, given the strong demand and the
Company's favorable financial position, the Company still expects net capital
expenditures to reach a record of $80 million in fiscal 2009, above and beyond
the purchase price for this acquisition."
    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 21 to 24 of the 2008 Annual Report
entitled "General Risks and Uncertainties", as filed with the Canadian
Securities Commission (available on SEDAR at 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,
South and Central America, Australia, Indonesia, Mongolia, Armenia, and

For further information:

For further information: Denis Larocque, Chief Financial Officer, (506)
857-8636, Fax: (506) 857-9211,

Organization Profile

Major Drilling Group International Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890