Business
Major Drilling Announces Purchase of Ecuador Drilling Operation
Major Drilling Announces Purchase of Ecuador Drilling Operation.
About this update from Major Drilling Group International Inc.
[{"type":"text","content":"\n\n\n\nMONCTON, NB, Oct. 25 /CNW/ - Major Drilling Group International Inc.\n(TSX: MDI) ("Major Drilling" or the "Company") is pleased to announce that,\nthrough its wholly owned Ecuador subsidiary, it has acquired the assets of the\nexploration drilling company Paragon del Ecuador S.A. ("Paragon").\n\n\nParagon is the largest mineral exploration drilling contractor in\nEcuador, operating seven drill rigs. In addition to the rigs, this acquisition\ninvolves support equipment and inventory, existing contracts, and personnel.\nSubsequent to this acquisition Major Drilling now has a total of nine drill\nrigs in Ecuador.\n\n\nThe purchase price for the transaction was US$6 million, subject to\nvarious holdbacks.\n\n\nFrancis McGuire, President and CEO of Major Drilling, stated "We are very\npleased to welcome Paragon drilling and its employees into the Major Drilling\ngroup. This acquisition provides us with additional assets, experienced\ndrillers and existing contracts in Ecuador. We anticipate that the operations\nof Paragon will produce additional revenues of approximately US$3.6 million\nfor the balance of our fiscal year, ending April 30, 2008. "\n\n\nSome of the statements contained in this press release may be\nforward-looking statements, such as estimates and statements that describe or\nare with respect to the future price of minerals and metals, the Company's\nfuture plans, objectives or goals, including words to the effect that the\nCompany or management expects a stated condition to exist or occur. Since\nforward-looking statements address future events and conditions, by their very\nnature, they involve inherent risks and uncertainties. Actual results in each\ncase could differ materially from those currently anticipated in such\nstatements by reason of factors such as, but not limited to, the factors set\nout in the discussion starting on pages 19 to 22 of the 2007 Annual Report\nentitled "General Risks and Uncertainties", as filed with the Canadian\nSecurities Commission (available on SEDAR at www.sedar.com). All such factors\nshould be considered carefully when making decisions with respect to the\nCompany. The Company does not undertake to update any forward-looking\nstatements, including those statements that are incorporated by reference\nherein, whether written ...