Business
Strategic Investment
Strategic Investment.
About this update from Capital Limited
[{"type":"text","content":"\n \nRNS Number : 6160Z Capital Drilling Limited 16 March 2017 \n\n \nCapital Drilling Limited\n(\"Capital Drilling\", the \"Group\" or the \"Company\")\n \nStrategic Investment in Laboratory Testing Services Company\n \nCapital Drilling Limited (CAPD:LN), a leading drilling solutions company focused on emerging and developing markets, is pleased to announce a phased strategic investment of up to US$3.8 million in private laboratory testing services company, A2 Global Ventures Inc (\"A2\"). \n \nTrading as MS Analytical, A2 is headquartered in Vancouver, Canada, where it operates a central hub laboratory, supported by feeder laboratories in Guyana, Myanmar and Sweden. The business was established in mid 2015 with an expansion plan focused on emerging market opportunities. The founders of A2 have extensive experience in the provision of laboratory testing services to the mining and exploration industries, particularly in emerging markets. MS Analytical is accredited to ISO9001 and ISO17025 quality standards, a requirement for many mining customers. \n \nMS Analytical currently has over 50 blue chip and mid-tier customers operating in more than 15 countries. The investment by Capital Drilling will fund A2's expansion plans, including the establishment of new laboratories in Capital Drilling's core African market and other emerging markets. Capital Drilling and A2 see significant opportunities to realise synergies and support customers through the cross selling of services and the sharing of infrastructure. \n \nSince its inception, A2 has raised over C$3 million (approximately US$2.2 million) which has been invested its laboratories and related fixed assets and growth working capital. The business is yet to report audited financial results. While A2 pursues is expansion plans, it is not expected to achieve profitability in 2017 but represents and important platform for Capital Drilling as part of its own growth strategy, and greater exposure to the improving outlook for mineral exploration markets.\n \nCapital Drilling has advanced US$0.95 million to A2 as the first tranche of its investment for an interest of approximately 20 per cent. Three further tranches for a further US$2.85 million are to be advanced by 31 December 2017 for a total investment of US$3.8 million and an interest of 50 p...