Or­bit Garant ac­quires Burk­ina Faso drilling busi­ness

Stockwatch Daily - - MINES & METALS - Mr. Eric Alexan­dre re­ports

OR­BIT GARANT Drilling Inc.’s op­er­at­ing sub­sidiary based in Oua­gadougou, Burk­ina Faso, For­age Or­bit Garant BF SAS, has ac­quired the drilling busi­ness of Pro­jet Pro­duc­tion In­ter­na­tional BF SA, based in Burk­ina Faso, through an as­set pur­chase agree­ment for a to­tal pur­chase price of $6.4-mil­lion (U.S.). Through the ac­qui­si­tion, Or­bit Garant BF has added 13 sur­face drills, re­lated sup­port equip­ment and ex­ist­ing cus­tomer con­tracts in Burk­ina Faso. Or­bit Garant BF has also re­tained ap­prox­i­mately 100 em­ploy­ees, in­clud­ing ex­pe­ri­enced drillers and sup­port per­son­nel, who will now be based in Or­bit Garant BF’s of­fices in Oua­gadougou. The com­pany ex­pects the ac­qui­si­tion to add ap­prox­i­mately $12-mil­lion in in­cre­men­tal rev­enue and generate pos­i­tive cash flow and earn­ings for its fis­cal year ended June 30, 2019.

“Burk­ina Faso has emerged as one of largest gold pro­duc­ing coun­tries in Africa and one of the most ac­tive ex­plo­ration mar­kets on the con­ti­nent. This ac­qui­si­tion sig­nif­i­cantly strength­ens our pres­ence in Burk­ina Faso and the broader West African min­eral drilling mar­ket, positioning us to pur­sue new growth op­por­tu­ni­ties,” said Eric Alexan­dre, pres­i­dent and chief ex­ec­u­tive offi--

cer of Or­bit Garant. “We are em­ploy­ing the same strat­egy with this ac­qui­si­tion as we did in Chile, namely to establish a pres­ence in a tar­geted mar­ket and then strengthen that pres­ence with a lo­cal, pru­dent ac­qui­si­tion. Three years ago, we had vir­tu­ally no pres­ence in Chile and to­day we are one of the larger min­eral drilling com­pa­nies in that mar­ket. We have an op­por­tu­nity to du­pli­cate that suc­cess in West Africa given the in­creas­ing drilling ac­tiv­ity in that mar­ket.” Or­bit Garant will fi­nance the $6.4-mil­lion (U.S.) pur­chase price through draws on its credit fa­cil­ity and the is­suance of com­mon shares of the com­pany to Pro­jet Pro­duc­tion In­ter­na­tional BF SA. The cash component of the trans­ac­tion is $5.15-mil­lion (U.S.), with $2,575,000 (U.S.) paid on clos­ing and $2,575,000 (U.S.) paid 12 months af­ter the clos­ing date. The re­main­ing $1.25-mil­lion (U.S.) of the pur­chase price will be sat­is­fied through the is­suance of 861,637 com­mon shares at a price of $1.8939 per share, from the com­pany’s trea­sury. The price of the com­mon shares is based on the vol­ume-weighted av­er­age price on the Toronto Stock Ex­change for the five trad­ing days pre­ced­ing the clos­ing day of the trans­ac­tion, Oct. 11, 2018.

About Or­bit Garant Drilling Inc. Head­quar­tered in Val d’Or, Que., Or­bit Garant is one of the largest Cana­dian-based min­eral drilling com­pa­nies, pro­vid­ing both un­der­ground and sur­face drilling ser­vices in Canada and in­ter­na­tion­ally through its 235 drill rigs and more than 1,200 em­ploy­ees. Or­bit Garant pro­vides ser­vices to ma­jor, in­ter­me­di­ate and ju­nior min­ing com­pa­nies, through each stage of min­ing ex­plo­ration, devel­op­ment and pro­duc­tion. The com­pany also pro­vides geotech­ni­cal drilling ser­vices to min­ing or min­eral ex­plo­ration com­pa­nies, en­gi­neer­ing and en­vi­ron­men­tal con­sul­tant firms, and govern­ment agen­cies.

We seek Safe Har­bor.

Eric Alexan­dre, Pierre Alexan­dre, Paul Ray­mond Carmel, Wil­liam N Gula, Jean-Yves Lal­ib­erte

(OGD) Shares: 36,147,119

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