|March 08, 2010|
Energold Announces Strategic Acquisition Of African Drilling Operation
|Energold Drilling Corp. ("Energold" or "the Company") is pleased to announce that it has acquired the assets and the drilling operations of Envirodrill, Ltd., United Kingdom. Envirodrill has a proven track record of successfully completing complex and difficult drilling programs in West Africa and Madagascar and brings strong technical and operational expertise to the Energold team.|
Through this purchase, the Company has acquired nine diamond and reverse circulation drill rigs, with related support equipment, together with inventory and existing contracts. In addition to purchasing the drilling assets, Energold is retaining the drilling operational team and has entered into a management services agreement with Ritcan Envirodrill Ltd. to allow the Company to utilize administrative and logistics personnel and existing facilities.
The total equivalent value of the purchase price for the transaction is $1.7 million, comprised of a combination of cash; settlement of debt for shares in Energold (amounting to 107,225 shares); lease arrangements; and, a future holdback that can be satisfied by way of shares in Energold at its sole option at any time during the two-year term of the holdback. Assuming conversion of the future holdback to payment in shares, approximately one-third of the acquisition price would be satisfied by payment in Energold shares (amounting to 157,016 shares).
This acquisition is part of a strategic program to expand the operations of the Energold Group. With the nine additional rigs, the Company now has 91 drill rigs, with two more to be delivered during this quarter. Due to recent demand, the Company has placed a further order for six more of its EGD Mobile Surface Rigs.
Energold Drilling Corp. is a contract diamond drilling company servicing the international mining industry. Throughout its operations in the developing world, Energold emphasizes an environmentally and socially sensitive approach to drilling. Energold also holds 6.6 million shares of IMPACT Silver Corp., a profitable silver producer in Mexico.
On behalf of the Directors of Energold Drilling Corp.,
"Frederick W. Davidson"
For further information, please contact:
Craig Geier, VP Corporate Development
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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