Orbit Garant Drilling has acquired 100% of Santiago, Chile-based Captagua Ingeniería S.A. from NALAC S.A. and Inmobiliaria y Constructora Lo Barnechea S.A. The initial purchase price of the shares of some C$2.1 million was satisfied by the issuance of 1,824,900 common shares of Orbit Garant. The transaction also includes the assumption of Captagua’s pro forma net debt of about C$2.2 million as at November 30, 2015. Orbit Garant has also agreed that the initial purchase price of the shares will be adjusted by an amount equivalent to any cash received by Captagua, after closing, from specific tax return claims aggregating a total amount of approximately C$0.65 million.
“The acquisition of Captagua significantly enhances our presence in Chile, a major mining jurisdiction, and strengthens our platform for future growth in Chile and throughout South America,” said Eric Alexandre, President and CEO of Orbit Garant. “Through this transaction and its integration with our recently established operating subsidiary in Chile, we are creating a strong strategic hub for Orbit Garant in South America. Captagua has 17 drill rigs, more than 50 years of operating history, an experienced management team, highly skilled personnel and a strong reputation in the Chilean market. By harnessing our combined strengths in surface drilling and adding Orbit Garant’s underground drilling expertise and our computerised monitoring and control technology, along with Captagua’s water drilling capabilities, we are creating a strong, comprehensive drilling services offering for the Chilean and South American markets.”
Captagua provides surface drilling services (diamond drilling and reverse circulation), to mineral exploration and mining. It also has extensive water drilling capabilities, including specialised piping and supply equipment for pumping, operating and maintenance of water wells. Captagua has worked with many leading international mining enterprises over its history, has some 180 employees and has generated annual revenues in the range of C$17 million to C$25 million over the last three years. As at November 30, 2015, Captagua had total assets in excess of about C$16 million and a book equity in excess of C$7.6 million on its pro forma balance sheet. Upon closing, Orbit Garant will move its current base of operations and staff in Chile progressively into Captagua’s headquarters in Santiago. Captagua’s senior management team and employees will remain in place to ensure continuity of operations and the preservation of important customer relationships.
“We look forward to joining forces with Orbit Garant,” said Ivan Luksic, Chief Executive Officer of Captagua. “Orbit Garant is recognised as one of Canada’s leading mineral drilling companies and we welcome this opportunity to create a stronger South American drilling organisation with a comprehensive service offering for both surface and underground drilling projects, as well as advanced geotechnical and water drilling capabilities. Our companies share a similar culture, which reflects a focus on the highest standards of health and safety, continuous innovation and exceptional service quality to customers and building long-term industry relationships.”
Headquartered in Val-d’Or, Quebec, Orbit Garant is one of the largest Canadian-based mineral drilling companies, providing both underground and surface drilling services in Canada and internationally through its 226 drill rigs and approximately 800 employees. Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production. The company also provides geotechnical drilling services to mining or mineral exploration companies, engineering and environmental consultant firms, and government agencies.