Extends Credit Facility/Renews Four Large Drilling Contracts VAL-D'OR, QC, Nov. 30, 2021 /CNW/ - Orbit Garant Drilling Inc. (TSX: OGD) ("Orbit Garant" or the "Company") today announced that it has reached an agreement with National Bank of Canada on certain amendments to its amended and restated credit agreement dated March 8, 2021 (the "Credit Facility"). The amendments provide Orbit Garant with more favourable interest rates and extend the maturity date by two years, from November 2, 2022 to November 2, 2024. The Credit Facility consists of a $35.0 million revolving credit facility and a US$5.0 million revolving credit facility guaranteed by Export Development Canada.
The Company also announced that it has recently renewed four drilling contracts in Quebec with gold mining customers. Three of the contracts are for underground drilling projects and one is for a surface drilling project. The contracts range from two to four years in length and are expected to comprise an aggregate of 1,240,000 metres of drilling. The total revenue to be collected over the term of the contracts is expected to be approximately $98.6 million.
"The amendments to our credit facility provide us with additional financial flexibility as we seek to build market share during this positive business cycle," said Eric Alexandre, President and CEO. "These contract renewals will bring us substantial revenue and also reflect increased contract pricing. The renewals demonstrate the strong performance we have achieved with these long-term customers."