Orbit Garant acquires Burkina Faso drilling business
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.
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Eric Alexandre, Pierre Alexandre, Paul Raymond Carmel, William N Gula, Jean-Yves Laliberte
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