Business
Orbit Garant Drilling Inc. acquires Forage+ and 100,000 metre specialized drilling contract for Osisko Mining Corp.
VAL-D'OR, QC, Oct. 14 /CNW/ - Orbit Garant Drilling Inc. (TSX: OGD) today announced the acquisiti...
About this update from Orbit Garant Drilling Inc.
[{"type":"text","content":"\n\n\n\nVAL-D'OR, QC, Oct. 14 /CNW/ - Orbit Garant Drilling Inc. (TSX: OGD) today\nannounced the acquisition of Forage+. Under terms of the transaction, Orbit\nGarant has purchased all of the issued and outstanding shares of 9129-5632\nQuebec Inc., doing business as Forage+, a specialized drilling company\noperating seven drilling rigs. As part of the transaction, Orbit Garant is\nacquiring a 100,000-metre drilling services contract with Osisko Mining Corp.\n(TSX:OSK), a Forage+ customer.\n\n\nThe purchase price consists of $1.5 million in cash and 457,142 payable\nin common shares of Orbit Garant representing an aggregate amount of $1.6\nmillion, issued at an allocated value of $3.50 per share and the payment\namount of $624,456 to the Vendors in order to compensate for the difference\nbetween the 30-day average trading price of $2.134 per share and the allocated\nvalue of $3.50 per share.\n\n\nThe parties have agreed to a contractual escrow agreement with a release\nperiod of over 30 months. Larry Belanger, CEO of Forage+, has entered into a\n12-month employment contract with Orbit Garant.\n\n\n"We expect this transaction to be immediately accretive and to generate\napproximately $2.6 million in incremental EBITDA over the next 12 months,"\nsaid Eric Alexandre, President and Chief Operating Officer. "This strategic\nacquisition will further leverage our established infrastructure, expand on\nour already strong market position of specialty drilling in the Abitibi region\nof Quebec, and bring the company an important new customer."\n\n\nOsisko hold a 100 per cent interest in the Canadian Malartic gold deposit\nin the Abitibi region of Quebec, Canada. On September 8, 2008, Osisko filed an\ninitial NI 43-101-compliant resource estimate for the main deposit, with a\ngold resource of 7.69 million ounces in the Measured & Indicated category and\n720,000 ounces in the Inferred category.\n\n\nEric Alexandre added, "Completion of the drilling program at the Canadian\nMalartic gold deposit will require the use of additional specialized drills.\nThrough our manufacturing subsidiary, Soudure Royale, Orbit Garant is very\nwell positioned to meet this need."\n\n\nAbout Orbit Garant\n\n\nOrbit Garant is one of the largest Canadian-based drilling companies,\nproviding both underground and surface drilling serv...