Ausdrill has been given strong investor backing for its proposed takeover of leading underground hard-rock mining contractor Barminco, with its retail shareholders providing it with A$77 million ($55 million) of cash as part of a planned A$250 million equity raise.

This amount, on top of a similar institutional investor share offer that raised A$175 million, means the company now has the money in its coffers to complete the deal.

When the proposed deal was announced on August 15, Ausdrill Executive Chairman Ian Cochrane said adding Barminco to the fold would “broaden our strategic footprint to be Australia’s clear #2 mining services company and set in place a balance sheet with the capacity to achieve sustainable and profitable growth”.

The bid valued Barminco’s equity at A$271.5 million, together with $425.5 million of net debt, implying an enterprise value of A$697 million. The two companies know each other well being joint venture partner in the African Underground Mining Services company.

Shareholders will get to officially sign off on the deal at Ausdrill’s AGM on October 25.