Business
Geodrill enters into prepayment agreement with Azumah Resources
TORONTO, Aug. 22, 2011 /CNW/ - Geodrill Limited (" Geodrill " or "the Company ") (GEO:TSX), ...
About this update from Geodrill Limited
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Aug. 22, 2011 /CNW/ - Geodrill Limited (\"Geodrill\" or \"the Company\") (GEO:TSX), a leading West African based drilling company, announced\n today that the Company (through its Ghana subsidiary) has entered into\n an agreement (the \"Prepayment Agreement\") with Azumah Resources Limited (ASX:AZM) (\"Azumah\"), whereby pursuant to the terms of the Prepayment Agreement, Azumah\n has agreed to prepay up to US$3 million for drilling services.  In\n return, Geodrill has agreed to provide Azumah access to at least three\n drilling rigs and fixed contract rates for Azumah's drilling\n requirements for up to 12 months.  Performance of the terms of\n prepayment contract has been secured by three drill rigs.\n\n\n\"This agreement is testament to the strength of our customer\n relationships and allows Geodrill to further accelerate our rig growth.\n By locking in rigs for the term, Azumah is guaranteed access to rigs\n for its current drill program while allowing Geodrill to easily fund\n its rig fleet expansion for the year,\" said David Harper, President and\n CEO of Geodrill Limited.\n\n\nIn addition, the Company is pleased to announce that it has entered into\n a private loan agreement with Silverwood Ventures Limited, a private\n investment company, in the amount of £2 million.  The loan is for\n period of one year at a commercial rate and is secured by certain drill\n rigs of the Company.\n\n\nThese agreements will allow the Company to fulfill certain preexisting\n obligations with respect to drilling rigs it is acquiring.\n\n\nAbout Azumah Resources \nAzumah is a well-capitalized, Australian-based company focused on the\n exploration and development of the 100%-owned Wa Gold Project in\n northwest Ghana, West Africa. The Company is in the final stages of\n drawing together the key components of the Feasibility Study on its Wa\n Gold Project.\n\n\nAbout Geodrill Limited\nGeodrill Limited is a leading West African based drilling company\n currently operating in Ghana and Burkina Faso. Geodrill provides\n exploration and development drilling services to major, intermediate\n and junior mining companies with exploration and development operations\n in West Africa.  The Company specializes in providing reverse\n circulation, diamond core and air-core drilling services using a modern\n fleet...