Post by
hanscazan on Mar 08, 2019 4:20am
Disposition of Dando Drilling for GBP 3.1 Million
Energold Announces the Proposed Disposition of Dando Drilling for GBP 3.1 Million Trading Symbols: "EGD:TSX.V | EGDFF:US" VANCOUVER, March 7, 2019 /CNW/ - Energold Drilling Group ("Energold") is pleased to announce that it has entered into a Binding Heads of Agreement ("HoA") with a private UK based company for the acquisition of Dando Drilling International Ltd. ("Dando"). Under the HoA the Purchaser has arranged for an immediate GBP 500,000 ($863,000 CAD approximately) banking facility for Dando and upon closing of a formal Sales and Purchase Agreement will fund Dando up to an additional GBP 1,000,000 ($1,727,000 CAD approximately). The Purchaser will hold 51% of the shares in Dando and will purchase the balance of the shares (49%) and shareholders loans from Energold for GBP 3.1 million ($5,355,000 CAD approximately) in equal quarterly installments over a ten-year period, commencing one year after closing. The transaction is part of a strategic reorganization resulting from a preliminary strategic review by the Company as it addresses its five-year plan for the future. Growth in demand for non-traditional drilling has been significant over the last two years and Energold intends to focus additional resources in supporting that growth while restructuring its field activities focusing on its stronger mineral markets and improving its operating margins on its core drilling businesses. Recognizing the highly competitive market for drilling services, it has also commenced an aggressive program to reduce overhead costs within the group. With a history of building drill rigs of over 150 years, Dando was originally acquired in 2011 to support the development of new rigs for Energold and to generate revenues from sales to third parties. Since acquiring Dando, Energold has strategically aligned the business unit to a be a nimble business division capable of designing, manufacturing, and marketing rigs worldwide. Revenues grew from a low of $7 million CAD in 2011 to over $22.9 million in 2013. Energold looks forward to working jointly with the private UK investor group to transition Dando into the global manufacturing business for the next century. Established in 1867, Dando is a renowned UK manufacturer of drilling rigs and equipment for the water well, mineral exploration, geotechnical, and geothermal sectors. With a broad and diverse customer base which includes UN departments, NGOs, charities, government departments, military organisations, private contractors and mine sites, Dando supplies machines worldwide and currently has rigs in operation on every continent. Dando is headquartered in the south coast of England, UK.