IMDEX has exercised its option to acquire Flexidrill and its patent-protected drilling productivity technologies, COREVIBE™ and MAGHAMMER™, it said.
The transaction is expected to be completed in January 2020 by the payment of NZ$3 million ($1.95 million) cash, which will be followed by further payments of cash and IMDEX shares.
Earlier this year, the company entered into a secondary option period to acquire the company from March 2019 – December 2019 to acquire the companies as it conducted further product development and testing, while establishing its supply chain and manufacturing requirements.
IMDEX Managing Director, Bernie Ridgeway, said: “The investment proposition is compelling. COREVIBE (pictured) has consistently delivered substantial drilling productivity benefits in hard ground conditions at our test site in New Zealand and in client trials. We are confident this new technology will be a step-change for the minerals drilling industry globally and deliver significant earnings for IMDEX.”
He said the company’s focus for COREVIBE during the rest of its 2020 financial year was to further introduce the technology to clients.
Ridgeway continued: “Further development of MAGHAMMER at our test site is also progressing well and we are on-track to commence client trials in Q3 2020 (September quarter of 2020).”
“We will provide further updates regarding these technologies with our H1 2020 results announcement in February 2020, however, we anticipate these technologies will provide recurring rental revenue from FY 2021,” he added.
COREVIBE uses high frequency energy pulse assisted drilling for wireline coring and provides a significant advancement in core drilling productivity. This unique technology can deliver significant benefits to clients including: higher penetration rates – up to 90%; reduced hole deviation; fewer inner tube blockages and associated tripping; and longer drill bit life, according to IMDEX.
IMDEX undertook successful trials at the company’s test site in New Zealand, which concluded the COREVIBE generated a productivity gain of 33% over conventional coring. These results were also validated by SGS, a leading inspection, verification, testing and certification company, and client trials in diverse locations and conditions, it said.
MAGHAMMER uses a new hybrid drilling technique, which combines rotary diamond drilling with fluid driven percussive drilling to achieve higher penetration rates compared to conventional coring.
The technology enables an entire drill hole to be completed with a coring rig where RC and diamond drilling is required, according to IMDEX.
Benefits for clients include: the ability to drill deeper faster and with lower cost – MAGHAMMER is not affected by water intrusion and is only limited in depth by the pullback capacity of the rig; rapid drill case setting; lower rig mobilisation and demobilisation costs; and a safer operating environment with substantially less dust than compressed air RC drilling, IMDEX says.
The first iteration of MAGHAMMER will be targeting high speed pre-collar drilling through barren rock to the coring zone. This eliminates the need for multiple drill rigs at site and, accordingly, the MAGHAMMER will significantly reduce the cost of drilling these targets, according to IMDEX. Additional development of the MAGHAMMER will provide geological samples.