Dec 14 2010
Orbit Garant Drilling Inc. (TSX: OGD) today announced the acquisition of Morris Drilling Inc.
Under terms of the transaction, Orbit Garant has purchased all of the issued and outstanding shares of Morris Drilling, a mineral drilling company operating five drilling rigs. As part of the transaction, Orbit Garant is acquiring a drilling services contract with Osisko Mining Corp. (TSX:OSK) at its Hammond Reef project near Thunder Bay, Ontario.
The purchase price consists of $2.625 million in cash and the equivalent of $1 million in Common Shares of Orbit Garant, at an issue price of $5.78 per share based on 30-day average trading price, representing an aggregate amount of $3.625 million.
The acquisition adds five drill rigs to the Company's expanding fleet of 164 drills and will be managed by Orbit Garant's Sudbury branch.
"We are very excited about this acquisition as it is directly in line with our growth strategy, enhancing our presence in Northern Ontario," said Eric Alexandre, President and Chief Executive Officer. "We have established an excellent working relationship with Osisko in Quebec at its Canadian Malartic gold deposit and we are enthusiastic about expanding our work with them at their Hammond Reef advanced gold project."
Eric Alexandre added, "One of our key competitive advantages is our low-cost operations realized through our proximity to clients. Since the acquisition of Advantage Control Technologies earlier this year, we have opened our branch and operations in Sudbury, effectively duplicating our low-cost business model that has enabled us to build our dominant presence in Quebec. This strategic acquisition will leverage our newly established infrastructure and expand our market position in Northern Ontario, an exciting milestone for us as we continue our growth."
Richard Ross, Orbit Garant's Sudbury branch manager said, "We are pleased to welcome the employees of Morris Drilling to the Orbit Garant team as we continue to build our presence in Sudbury." "Working with Osisko on the Hammond Reef project is an excellent opportunity for us. In addition to the proven resource, there is a vast amount of exploration potential at the project. This acquisition is just the beginning of our regional expansion, as we increase our market share and our involvement with the Northern Ontario community."
Source: Orbit Garant Drilling Inc.