MONCTON, NB, Oct. 25 /CNW/ - Major Drilling Group International Inc. (TSX: MDI) ("Major Drilling" or the "Company") is pleased to announce that, through its wholly owned Ecuador subsidiary, it has acquired the assets of the exploration drilling company Paragon del Ecuador S.A. ("Paragon").
Paragon is the largest mineral exploration drilling contractor in Ecuador, operating seven drill rigs. In addition to the rigs, this acquisition involves support equipment and inventory, existing contracts, and personnel. Subsequent to this acquisition Major Drilling now has a total of nine drill rigs in Ecuador.
The purchase price for the transaction was US$6 million, subject to various holdbacks.
Francis McGuire, President and CEO of Major Drilling, stated "We are very pleased to welcome Paragon drilling and its employees into the Major Drilling group. This acquisition provides us with additional assets, experienced drillers and existing contracts in Ecuador. We anticipate that the operations of Paragon will produce additional revenues of approximately US$3.6 million for the balance of our fiscal year, ending April 30, 2008. "
Some of the statements contained in this press release may be forward-looking statements, such as estimates and statements that describe or are with respect to the future price of minerals and metals, the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition to exist or occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements by reason of factors such as, but not limited to, the factors set out in the discussion starting on pages 19 to 22 of the 2007 Annual Report entitled "General Risks and Uncertainties", as filed with the Canadian Securities Commission (available on SEDAR at www.sedar.com). All such factors should be considered carefully when making decisions with respect to the Company. The Company does not undertake to update any forward-looking statements, including those statements that are incorporated by reference herein, whether written or oral, that may be made from time to time by or on its behalf, except in accordance with applicable securities laws.
Based in Moncton, New Brunswick, Major Drilling Group International Inc. is one of the world's largest metals and minerals contract drilling service companies. To support its customers' mining operations and mineral exploration activities, Major Drilling maintains operations in Canada, the United States, Mexico, South and Central America, Australia, Armenia, Indonesia, Africa and Mongolia.