|January 19, 2011|
Energold Drilling Corp. Announces Strategic Acquisition of Dando Drilling International Ltd., United Kingdom
|Energold Drilling Corp. ("Energold" or "the Group") announced that it has acquired the shares and taken over the business operations of Dando Drilling International Ltd. ("Dando"), headquartered in the United Kingdom. The Dando team has a long and proven track record of profitably designing and manufacturing specialty/customized drilling rigs and associated equipment for water well, mineral exploration and geotechnical drilling companies operating throughout the world. Dando has also supplied water well drilling services to many international institutions.|
Through this purchase, Energold has acquired all the outstanding shares of Dando for Pound Sterling 50,000 (CDN$80,000). The Energold Group will assume Pound Sterling 560,000 (CDN$887,000) of creditor debt and transaction costs, payable over three years.
Dando currently has existing contracts to build and deliver 17 rigs plus additional parts and supplies valued at approximately Pound Sterling 6.7 million (CDN$10.6 million) to solid creditworthy institutions and another three contracts valued at Pound Sterling 1.1 million (CDN$1.7 million) in negotiation to be shipped to locations around the world.
Energold will retain key employees and provide stock and/or stock options incentive compensation in Energold that collectively consists of restricted shares (CDN$160,000) and 150,000 share options priced at market (CDN$4.19 per share). With the acquisition of Dando, the Energold Group will have a staff of 30 comprised of senior management, engineers, administrative and hourly production employees.
Energold's strategic objective is to profitably expand Dando's core business; source additional rigs to broaden Energold's scope of services to selected customers in appropriate geographic regions; work with Dando's team of engineers to develop and supply next generation drilling rigs for Energold, and capitalize on Dando extensive experience and expertise to build a separate water well drilling services division for Energold.
The Dando team will provide Energold with an expanded core nucleus of operations and experience that will enable the Energold Group to broaden its scope of services offered to customers and expand its geographic coverage to take advantage of the growing global opportunities in the drilling industry.
Energold Drilling Corp. is an environmentally and socially-sensitive diamond drilling company that services the international mining industry. Energold holds 6.8 million shares of IMPACT Silver Corp.
On behalf of the Directors of Energold Drilling Corp.,
"Frederick W. Davidson"
For further information, please contact:
Sunny Pannu -- Investor Relations
(604) 681 9501 or via email at email@example.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release. Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, work programs and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the effects of general economic conditions, a reduction in the demand for the Company's drilling services, the price of commodities, changing foreign exchange rates, actions by government authorities, the failure to find economically viable acquisition targets, title matters, environmental matters, reliance on key personnel, the ability for operational and other reasons to complete proposed activities and work programs, the need for additional financing and the timing and amount of expenditures. Energold Drilling Corp. does not assume the obligation to update any forward-looking statement.
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