Canadian Mining Journal


DRILLING: Major Drilling to acquire Norex

Major Drilling is adding even more expertise to its group with the buyout of Norex. (Image: Major Drilling Group)

MONCTON, N.B. – Major Drilling Group International has entered into an agreement to acquire all of the issued and outstanding shares of Norex Drilling, a family owned drilling company and a leading exploration drilling contractor based in Timmins, Ont.

The purchase price for the acquisition is valued at an amount up to $19.7 million, which will consist of the following: (i) a cash payment of $15.2 million payable on closing of the transaction, subject to working capital adjustments; (ii) $2.0 million paid by the issuance of common shares of Major Drilling, valued on the closing of the transaction (subject to TSX approval); and (iii) an earn out of $2.5 million payable in cash following the third anniversary of closing. The cash portion of the purchase price is expected to be funded from Major Drilling’s current cash balance.

“We are very excited to welcome Norex and its 120 employees into the Major Drilling group. Norex has been operating successfully in the Ontario marketplace for some 40 years, and has a solid reputation with its clients. The acquisition of Norex is a unique opportunity for Major Drilling to gain a strong position to service our customers in both surface and underground exploration drilling services in the prolific northeastern Ontario region. The culture and operational values of both companies are very similar in terms of personnel and strategies, and this will allow us to provide our customers with expanded drilling services,” said Denis Larocque, president and CEO of Major Drilling.

Major Drilling is retaining the management team, is gaining access to skilled and experienced drillers and personnel, and is taking over existing contracts. Through this purchase, Major Drilling will also acquire an additional 22 drill rigs, including 17 compatible specialized surface drill rigs and five underground drills, together with related support equipment and inventory.

For the last two years, Norex had average yearly revenue of approximately $21 million and EBITDA of approximately $5 million. While Norex’s historical performance should not be viewed as guidance for future performance, we are optimistic about the continuing growth potential in this region considering Norex’s customers’ stated plans and the current market condition in the mining industry.

The acquisition is expected to close on or about Nov. 1, 2019, and is subject to customary closing conditions.

For an comprehensive list of services provided by either company, visit or