Business
Orbit Garant to Acquire Captagua Mining Services in Chile
Orbit Garant to Acquire Captagua Mining Services in Chile Orbit Garant to Acquire ...
About this update from Orbit Garant Drilling Inc.
[{"type":"text","content":"\n\n\n\nOrbit Garant to Acquire Captagua Mining Services in Chile\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nOrbit Garant to Acquire Captagua Mining Services in Chile\nCanada NewsWire\nVAL-D'OR, QC, Dec. 30, 2015\n\n\n\n- Transaction will strengthen South American business platform  -\n\n\n\nVAL-D'OR, QC, Dec. 30, 2015 /CNW/ - Orbit Garant Drilling Inc. (TSX: OGD) (\"Orbit Garant\" or the  \"Company\") today announced that it has acquired 100% of Santiago, Chile-based Captagua Ingeniería S.A. (\"Captagua\") from NALAC S.A. and Inmobiliaria y Constructora Lo Barnechea S.A. The initial purchase price of the shares of $1.077 billion Chilean Pesos (\"CLP\") (approximately CAD$2.1 million) was satisfied by the issuance of 1,824,900 common shares of Orbit Garant. The transaction also includes the assumption of Captagua's pro forma net debt of approximately CLP$1.094 billion (approximately CAD$2.2 million) as at November 30, 2015. Orbit Garant has also agreed that the initial purchase price of the shares will be adjusted by an amount equivalent to any cash received by Captagua, after closing, from specific tax return claims aggregating a total amount of approximately CLP$330 million (approximately CAD$0.65 million).\n\n\"The acquisition of Captagua significantly enhances our presence in Chile, a major mining jurisdiction, and strengthens our platform for future growth in Chile and throughout South America,\" said Eric Alexandre, President and CEO of Orbit Garant. \"Through this transaction and its integration with our recently established operating subsidiary in Chile, we are creating a strong strategic hub for Orbit Garant in South America. Captagua has 17 drill rigs, more than 50 years of operating history, an experienced management team, highly skilled personnel and a strong reputation in the Chilean market. By harnessing our combined strengths in surface drilling and adding Orbit Garant's underground drilling expertise and our computerized monitoring and control technology, along with Captagua's water drilling capabi...