Energold Announces Strategic Acquisition Of African Drilling
Energold Drilling Corp. ("Energold") is pleased to announce that it has
entered into an agreement to acquire the sub-Saharan Africa drilling
operations of Clarity Mineral Services Ltd. ("Clarity"), a member of
the Clarity Capital Group. The drilling operations are in Zambia,
Namibia and Tanzania. These businesses operate in regions where
Energold either does not currently have a presence or is lacking
infrastructure. Through this purchase, Energold will acquire six
diamond and reverse circulation drill rigs, with related support
equipment, together with inventory and contracts. All six rigs are
currently contracted. It is anticipated that these assets will give
Energold the immediate physical capacity to further expand its
operation throughout other parts of southern Africa in a timelier
manner than traditional organic growth. Africa, with its lack of
infrastructure and hard to access mining projects, is considered to be
a significant area of growth in the drilling industry.
In addition to purchasing the drilling assets, Energold is retaining
the drilling operations teams and anticipates entering into a
Management Services Agreement with Clarity to allow Energold to utilize
administrative and logistics personnel and existing facilities. The
purchase price for the transaction is $1 million, one-half of which
will be in cash, the balance in 126,367 shares of Energold at a deemed
price of $3.96 per share. It is anticipated that the acquisition will
be immediately accretive to earnings.
"We are very pleased with this acquisition as we anticipate it to be
part of developing a long term relationship with Clarity Mineral
Services. This purchase is in line with our growth strategy and will
assist Energold in beach heading new markets without the traditional
short-term drain on resources. These operations are an immediate fit
and allow us to add quality crews and address down-hole supply
shortages that could impact the growth rate of our African operations
in the future," said Mr. Davidson, President and CEO of Energold.
Clarity Mineral Services Ltd., is an African based, integrated, private
mining house wholly owned by Jersey headquartered Clarity Capital Ltd.
(www.claritycapital.com). Clarity's international mineral team
consists of 25 highly experienced technical and commercial specialists
that thrive on founding and growing successful mineral companies in
Africa and the Middle East. Clarity's current portfolio consists of 12
companies with operational offices in South Africa, Tanzania, Namibia,
Zambia and Zimbabwe. Clarity, with corporate offices in the UK, South
Africa and Canada, strives to deliver extraordinary capital
appreciation through responsible mineral exploration and development.
Energold Drilling Corp. is a contract diamond driller servicing the
mining industry. Throughout its operations in the developing world,
Energold emphasizes an environmentally and socially sensitive approach
to drilling. Energold holds 6.6 million shares of IMPACT Silver Corp.
On behalf of the Directors of Energold Drilling Corp.
"Frederick W. Davidson"
For further information, please contact:
Darrell Rader - Corporate Development
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this news release.
Copyright (c) 2008 ENERGOLD DRILLING CORP. (EGD) All rights reserved.
For more information visit our website at http://www.energold.com/ or