VAL-D'OR, QC, April 1, 2020 /CNW/ - Orbit Garant Drilling Inc. (TSX: OGD) ("Orbit Garant" or the "Company") today provided an update on the impact of the COVID-19 crisis on its operations. As a result of the Québec provincial government's order to minimize non-essential business activities in the province until at least April 13, 2020, the Company's drilling operations in Québec have been suspended until further notice. Orbit Garant's international drilling operations have been significantly reduced as result of government restrictions on business activity to control the spread COVID-19, or customer decisions to reduce or delay certain projects in this environment. The Company remains active on most of its drilling projects in Nunavut Territory and in the provinces of Ontario and New Brunswick, although drilling activity on certain projects has been temporarily reduced.
Orbit Garant considers the health and safety of its personnel, customers, suppliers, and the communities in which it operates to be a top priority. At this time, no employees of Orbit Garant have been diagnosed with COVID-19. The Company is closely monitoring this public health crisis and has implemented precautionary health and safety measures and controls across its operations, based on the recommendations, or directives, issued by the public health authorities and governments in the various jurisdictions in which the Company operates.
Orbit Garant's primary sources of liquidity are cash flows from operations, borrowings under a Credit Facility with its primary lender, National Bank of Canada Inc., and a term loan with Export Development Canada. The Company is currently in compliance with all of its borrowing agreements and it expects to be so in the near future. As part of its business continuity plan, the Company continues to manage its variable cost structure and cash to support its reduced level of operations during this difficult period, while maintaining the flexibility required to resume normal operations once restrictions are lifted.
"Our management team continues to monitor our operations, government directives within the jurisdictions that we operate in and precautionary measures to prioritize the health and safety of our personnel," said Eric Alexandre, President and Chief Executive Officer of Orbit Garant. "We will assess any new developments related to COVID-19 and related restrictions on economic activity as they arise, and provide appropriate updates on our operations and financial liquidity in a timely manner."
About Orbit Garant
Headquartered in Val-d'Or, Quebec, Orbit Garant is one of the largest Canadian-based mineral drilling companies, providing both underground and surface drilling services in Canada and internationally through its 233 drill rigs and more than 1,300 employees. Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production. The Company also provides geotechnical drilling services to mining or mineral exploration companies, engineering and environmental consultant firms, and government agencies. For more information, please visit the Company's website at www.orbitgarant.com.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Orbit Garant Drilling Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Risks and uncertainties that could cause actual results, performance or achievements to differ materially include the ability of the jurisdictions in which the Company operates to manage and cope with the implications of COVID-19, the impact of measures taken by such jurisdictions to control the spread of COVID-19 on the Company's operations, the economic and financial implications of COVID-19 to the Company, including its impact on cash flows, liquidity and the Company's compliance with its obligations under its borrowing agreements as well as the risks and uncertainties are discussed in the Company's regulatory filings available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by applicable securities laws.
SOURCE Orbit Garant Drilling Inc.
For further information: Alain Laplante, Vice President and Chief Financial Officer, (819) 824-2707 ext. 122; Bruce Wigle, Investor Relations, (647) 496-7856