|May 05, 2008|
Energold Announces Strategic Acquisition Of African Drilling Operation
|Energold Drilling Corp. ("Energold") is pleased to announce that it has entered into an agreement to acquire the sub-Saharan Africa drilling operations of Clarity Mineral Services Ltd. ("Clarity"), a member of the Clarity Capital Group. The drilling operations are in Zambia, Namibia and Tanzania. These businesses operate in regions where Energold either does not currently have a presence or is lacking infrastructure. Through this purchase, Energold will acquire six diamond and reverse circulation drill rigs, with related support equipment, together with inventory and contracts. All six rigs are currently contracted. It is anticipated that these assets will give Energold the immediate physical capacity to further expand its operation throughout other parts of southern Africa in a timelier manner than traditional organic growth. Africa, with its lack of infrastructure and hard to access mining projects, is considered to be a significant area of growth in the drilling industry.|
In addition to purchasing the drilling assets, Energold is retaining the drilling operations teams and anticipates entering into a Management Services Agreement with Clarity to allow Energold to utilize administrative and logistics personnel and existing facilities. The purchase price for the transaction is $1 million, one-half of which will be in cash, the balance in 126,367 shares of Energold at a deemed price of $3.96 per share. It is anticipated that the acquisition will be immediately accretive to earnings.
"We are very pleased with this acquisition as we anticipate it to be part of developing a long term relationship with Clarity Mineral Services. This purchase is in line with our growth strategy and will assist Energold in beach heading new markets without the traditional short-term drain on resources. These operations are an immediate fit and allow us to add quality crews and address down-hole supply shortages that could impact the growth rate of our African operations in the future," said Mr. Davidson, President and CEO of Energold.
Clarity Mineral Services Ltd., is an African based, integrated, private mining house wholly owned by Jersey headquartered Clarity Capital Ltd. (www.claritycapital.com). Clarity's international mineral team consists of 25 highly experienced technical and commercial specialists that thrive on founding and growing successful mineral companies in Africa and the Middle East. Clarity's current portfolio consists of 12 companies with operational offices in South Africa, Tanzania, Namibia, Zambia and Zimbabwe. Clarity, with corporate offices in the UK, South Africa and Canada, strives to deliver extraordinary capital appreciation through responsible mineral exploration and development.
Energold Drilling Corp. is a contract diamond driller servicing the mining industry. Throughout its operations in the developing world, Energold emphasizes an environmentally and socially sensitive approach to drilling. Energold holds 6.6 million shares of IMPACT Silver Corp.
On behalf of the Directors of Energold Drilling Corp.
"Frederick W. Davidson"
For further information, please contact:
Darrell Rader - Corporate Development
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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