Major Drilling Announces Purchase of Mozambique Operation
MONCTON, NB, March 24 /CNW/ --
MONCTON, NB, March 24 /CNW/ - Major Drilling Group International Inc.
(TSX: MDI) is pleased to announce that it has, today, completed the
purchase of the drilling operations of Resource Drilling in Mozambique.
This business operates in a region where Major Drilling does not
currently have a presence.
Through this purchase Major Drilling will acquire 15 drill rigs,
together with related support equipment, inventory, and contracts. In
addition to purchasing the drilling assets, Major Drilling is retaining
the operations' management teams, as well as most of the other
employees, including a large number of experienced drillers.
The purchase price for the transaction is US$9.73 million.
'We are very pleased to welcome this new operation into the Major group.
Not only does this acquisition provide us with assets, experienced
drillers and existing contracts in Mozambique, it also provides a
foundation for our expansion in this exciting region, which shows great
mining potential, particularly for coal projects,' said Francis
McGuire, President and CEO of Major Drilling Group International Inc.
Some of the statements contained in this press release may be
forward-looking statements, such as, but not limited to, those relating
to worldwide demand for gold and base metals and overall commodity
prices, the level of activity in the minerals and metals industry and
the demand for the Company's services, the Canadian and international
economic environments, the Company's ability to attract and retain
customers and to manage its assets and operating costs, sources of
funding for its clients, particularly for junior mining companies,
competitive pressures, currency movements, which can affect the
Company's revenue in Canadian dollars, the geographic distribution of
the Company's operations, the impact of operational changes, changes in
jurisdictions in which the Company operates (including changes in
regulation), failure by counterparties to fulfill contractual
obligations, and other factors as may be set forth, as well as
objectives or goals, and 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 15 to 17 of the 2010 Annual Report entitled 'General Risks and
Uncertainties', and such other documents as 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, mineral
exploration and environmental activities, Major Drilling maintains
operations in Canada, the United States, South and Central America,
Australia, Asia, and Africa.
To view this news release in HTML formatting, please use the following URL: http://www.cnw.ca/en/releases/archive/March2011/24/c6276.html
Denis Larocque, Chief Financial Officer
Tel: (506) 857-8636
Fax: (506) 857-9211
ir@majordrilling.com