Capital Drilling Limited Strategic Investment (6160Z)
March 16 2017 - 2:00AM
UK Regulatory
TIDMCAPD
RNS Number : 6160Z
Capital Drilling Limited
16 March 2017
Capital Drilling Limited
("Capital Drilling", the "Group" or the "Company")
Strategic Investment in Laboratory Testing Services Company
Capital Drilling Limited (CAPD:LN), a leading drilling solutions
company focused on emerging and developing markets, is pleased to
announce a phased strategic investment of up to US$3.8 million in
private laboratory testing services company, A2 Global Ventures Inc
("A2").
Trading as MS Analytical, A2 is headquartered in Vancouver,
Canada, where it operates a central hub laboratory, supported by
feeder laboratories in Guyana, Myanmar and Sweden. The business was
established in mid 2015 with an expansion plan focused on emerging
market opportunities. The founders of A2 have extensive experience
in the provision of laboratory testing services to the mining and
exploration industries, particularly in emerging markets. MS
Analytical is accredited to ISO9001 and ISO17025 quality standards,
a requirement for many mining customers.
MS Analytical currently has over 50 blue chip and mid-tier
customers operating in more than 15 countries. The investment by
Capital Drilling will fund A2's expansion plans, including the
establishment of new laboratories in Capital Drilling's core
African market and other emerging markets. Capital Drilling and A2
see significant opportunities to realise synergies and support
customers through the cross selling of services and the sharing of
infrastructure.
Since its inception, A2 has raised over C$3 million
(approximately US$2.2 million) which has been invested its
laboratories and related fixed assets and growth working capital.
The business is yet to report audited financial results. While A2
pursues is expansion plans, it is not expected to achieve
profitability in 2017 but represents and important platform for
Capital Drilling as part of its own growth strategy, and greater
exposure to the improving outlook for mineral exploration
markets.
Capital Drilling has advanced US$0.95 million to A2 as the first
tranche of its investment for an interest of approximately 20 per
cent. Three further tranches for a further US$2.85 million are to
be advanced by 31 December 2017 for a total investment of US$3.8
million and an interest of 50 per cent. The A2 investment will be
funded from Capital Drilling's existing cash resources, expected
cash generation and undrawn facilities.
Capital Drilling's Chairman, Jamie Boyton and Non-Executive
Director, Brian Rudd have been appointed as non-executive directors
of A2. The current directors of A2 are Geoff Woodfield and Dr
George Siasios. Both Mr Woodfield and Mr Siasios were members of
the executive team that participated in the growth and sale of
AcmeLabs to Bureau Veritas in 2012.
Tamesis Partners LLP is acting as financial adviser to A2 in
connection with the transaction.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/ 2014.
For further information, please visit Capital Drilling's website
www.capdrill.com or contact:
Capital Drilling Limited +230 464 3250
Jamie Boyton, Executive Chairman investor@capdrill.com
Dewald van Tonder, Chief Financial Officer
finnCap Ltd +44 20 7220 0500
Christopher Raggett, Corporate Finance
Emily Morris/Simon Johnson, Corporate Broking
Tamesis Partners LLP +44 20 3882 2868
Charlie Bendon
Richard Greenfield
Buchanan +44 20 7466 5000
Bobby Morse capitaldrilling@buchanan.uk.com
Gemma Mostyn-Owen
About Capital Drilling
Capital Drilling provides specialised drilling services to
mineral exploration and mining companies in emerging and developing
markets, for exploration, development and production stage
projects. The Company currently owns and operates a fleet of 93
drilling rigs with established operations in Botswana, Chile,
Egypt, Ethiopia, Kenya, Mali, Mauritania, Serbia and Tanzania. The
Group's corporate headquarters is in Mauritius.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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