NEW BRUNSWICK – Moncton-based MAJOR DRILLING GROUP INTERNATIONAL is purchasing the assets of DYNATEC’s DRILLING SERVICES DIVISION for US$17.2 million. The acquisition will be made by a subsidiary, MAJOR DRILLING AMERICA.
The Drilling Services Division operates in the western United States (Arizona, Idaho, Oregon, Nevada, Utah, Wyoming) as well as West Virginia, areas where Major Drilling does not currently have a presence. Through this purchase Major Drilling will acquire more than 30 drill rigs, including 18 specialized surface drill rigs, together with related support equipment and inventory. The company is also entering into an agreement to lease the Drilling Services Division office, warehouse facilities and yard in Salt Lake City, Utah, for two years.
In addition to the drilling rigs, support equipment, and inventory, Major Drilling is retaining the division’s management team, is gaining access to a large pool of skilled and experienced drillers, is establishing a presence in a large and important North American mining region, and is taking over an operation with approximately US$30 million in projected revenues over the next 12 months.
The purchase will be financed through the issue of US$5.0 million of Major Drilling common stock out of treasury (527,485 shares) and US$12.2 million of debt.
Major Drilling lists its contacts and branches on its website, www.MajorDilling.com.