Dundee boosts stake in Major Drilling

Investment firm Dundee Precious Metals (DPM-T) has acquired 300,000 shares of Moncton, N.B.-based Major Drilling Group International (MDI-T) at $3.76 per share. As a result, Dundee nows holds an 11.8% stake.

Dundee says it acquired the shares for investment purposes.

Major Drilling recently agreed to acquire the drilling assets connected to the Australian and New Zealand operations of Ausdrill for a total consideration of $4.4 million. These assets include drilling equipment, as well as contracts.

At the fiscal year ended April 30, 2001, Major Drilling incurred a net loss of $9.3 million (or 84 per share), which included a third-quarter writedown of its investment in Ausdrill of $6.9 million. This compares with a loss of $194,000 (2 per share) in fiscal 2000. Total revenue from drilling and manufacturing increased 11.4% to $129.9 million for fiscal 2001, versus $116.6 million in the previous year.