Business
Major Drilling Announces Agreement To Purchase The Business of Taurus Drilling Services
MONCTON, NB , July 21, 2014 /CNW/ - Major Drilling is pleased to announce its entry into...
About this update from Major Drilling Group International Inc.
[{"type":"text","content":"\n\n\nMONCTON, NB, July 21, 2014 /CNW/ - Major Drilling is pleased to announce\n its entry into the underground percussive/longhole drilling sector with\n its agreement to purchase the operations of Taurus Drilling Services. \n This business operates in Canada, the U.S. and Mexico, providing\n underground percussive/longhole drilling to mining company clients.\n\n\nThrough this purchase, Major Drilling will acquire 39 drill rigs,\n together with related equipment, inventory and contracts.  In addition\n to purchasing the drilling assets, Major Drilling is retaining the\n operation's management teams, as well as the other employees, including\n experienced drillers.  Over the past 12 months the operations of Taurus\n have produced revenue of approximately $38 million and EBITDA of\n approximately $8 million. The closing of the transaction is currently\n scheduled for August 1, 2014, and is subject to normal closing\n conditions.\n\n\nSubject to adjustment under the Agreement, Major Drilling will pay\n C$27.7 million on closing (consisting of $15.9 million in cash, $7.5\n million in Major Drilling shares and $4.3 million in assumption of\n debt) and an additional maximum amount of C$11.5 million tied to\n performance.  The additional payout period extends for three years,\n commencing on August 1, 2014, and payments are contingent on growing\n EBITDA run rates above current levels.\n\n\n\"We are very pleased to welcome Taurus Drilling Services and its\n employees into the Major Drilling group.  The Taurus acquisition opens\n the door to additional diversification in the mining industry as\n percussive longhole drilling is more related to the production function\n of a mine.  Offering both underground production drilling and our\n existing underground core drilling, we can now provide an even wider\n range of complimentary services to our clients,\" stated Francis\n McGuire, President and CEO of Major Drilling.\n\n\nSome of the statements contained in this press release may be\n forward-looking statements, such as, but not limited to the closing of\n the Taurus acquisition, those relating to worldwide demand for gold and\n base metals and overall commodity prices, the level of activity in the\n minerals and metals industry and the demand for the Company's services,\n the Canadian and international econ...