Major Drilling buys Bradley Group
Major Drilling Group International (MDI-T) has acquired the Bradley Group, a family-owned drilling company based in Rouyn-Noranda, Que., for $80 million.
The acquisition was financed through a $70-million bought-deal public offering of subscription receipts, and new and extended credit facilities of $100 million in aggregate.
The transaction adds 124 drill rigs and 841 employees to Major Drilling’s base of 571 rigs and 4,362 employees.
It also gives the company new geographic footprints in northern Quebec and northern Ontario – where Major Drilling is less active – and in the Philippines, where the company is a new presence.
“The cultures of our two companies are very similar, and we look forward to a very smooth integration of our operations,” Francis McGuire, president and CEO of Major Drilling, said in a statement. “By combining our operations in Canada, Colombia, Mexico and Suriname, and by adding the Philippines to our geographic footprint, we are building a solid base to take our operations forward.”
McGuire adds that the company is pleased to expand in eastern Canada, which he says is “an area that has historically performed well, even during the last cyclical downturn.”
Sonoran contracted for Oroco’s Cerro Prieto Mine
Oroco Resource (OCO-v) has entered an engineering, procurement and construction management (EPCM) agreement with Arizona-based Sonoran Resources for building an open-pit, heap-leach gold mine and refinery at Oroco’s Cerro Prieto project in Sonora state, Mexico.
According to the terms of the agreement Sonoran will provide EPCM services related to the construction of the mine and refinery through to first pour.
Oroco Resource will pay Sonoran a US$260,900 monthly fee to a maximum aggregate of US$3,130,800.
Subject to TSX Venture Exchange approval and a series of construction milestones, Oroco will issue 1 million shares to Sonoran and 500,000 options to purchase shares at 30¢ apiece for three years from the date of the agreement.
Sonoran has experience operating in the area, having recently worked at Silvercrest Mines‘ (SVL-V) nearby Santa Elena gold-silver mine.
“We are extremely pleased to have Sonoran Resources on board as our construction management group,” Oroco president Craig Dalziel said in a press release,.
He added that the company’s “recent experience and central role in bringing the Santa Elena mine into operation on schedule and under budget makes [Sonoran] the ideal management group for Oroco’s Cerro Prieto project.”
Veolia Water to operate the Wheal Jane mine
For the next 10 years, France-based water treatment company Veolia Water, a subsidiary of Veolia Environment (VE-N), will operate and maintain a water treatment plant at the Wheal Jane mine located near Truro in Cornwall, England.
Veolia will be working for the U.K. Coal Authority, which has taken the place of the Environment Agency.
The Wheal Jane mine was closed and the pumps stopped in 1991, which resulted in the mine’s flooding.
In 1992 over 10 million gallons of polluted water containing iron and other metals was released into Restronguet Creek, Carnon River and Falmouth Bay because of a faulty plug in the underground Nangiles adit.
The Environment Agency was in charge of finding a long-term solution for treating the water, and a treatment plant was built to meet the agency’s stringent discharge limits to the local water course.