Energold Drilling Corp. Announces Strategic
Acquisition of Dando Drilling International Ltd.,
United Kingdom
Energold Drilling Corp. ("Energold"
or "the Group") announced that it has acquired the shares and taken
over the business operations of Dando Drilling
International Ltd. ("Dando"), headquartered
in the United Kingdom. The Dando team has a long and
proven track record of profitably designing and manufacturing
specialty/customized drilling rigs and associated equipment for water well,
mineral exploration and geotechnical drilling companies operating throughout
the world. Dando has also supplied water well
drilling services to many international institutions.
Through this purchase, Energold has acquired all the
outstanding shares of Dando for Pound Sterling 50,000
(CDN$80,000). The Energold Group will assume Pound
Sterling 560,000 (CDN$887,000) of creditor debt and transaction costs, payable
over three years.
Dando currently has existing contracts to build and
deliver 17 rigs plus additional parts and supplies valued at approximately
Pound Sterling 6.7 million (CDN$10.6 million) to solid creditworthy
institutions and another three contracts valued at Pound Sterling 1.1 million
(CDN$1.7 million) in negotiation to be shipped to locations around the world.
Energold will retain key employees and provide stock
and/or stock options incentive compensation in Energold
that collectively consists of restricted shares (CDN$160,000) and 150,000 share
options priced at market (CDN$4.19 per share). With the acquisition of Dando, the Energold Group will
have a staff of 30 comprised of senior management, engineers, administrative
and hourly production employees.
Energold's strategic objective is to profitably
expand Dando's core business; source additional rigs
to broaden Energold's scope of services to selected
customers in appropriate geographic regions; work with Dando's
team of engineers to develop and supply next generation drilling rigs for Energold, and capitalize on Dando
extensive experience and expertise to build a separate water well drilling
services division for Energold.
The Dando team will provide Energold
with an expanded core nucleus of operations and experience
that will enable the Energold Group to broaden its
scope of services offered to customers and expand its geographic coverage to
take advantage of the growing global opportunities in the drilling industry.
Energold Drilling Corp. is an environmentally and
socially-sensitive diamond drilling company that services the international
mining industry. Energold holds 6.8 million shares of
IMPACT Silver Corp.
On behalf of the Directors of Energold Drilling
Corp.,
"Frederick W. Davidson"
President, CEO
For further information, please contact:
Sunny Pannu - Investor Relations
(604) 681 9501 or via email at info@energold.com
The TSX Venture Exchange
does not accept responsibility for the adequacy or accuracy of this news
release. Some statements in this news release contain forward-looking
information. These statements include, but are not limited to, statements with
respect to proposed activities, work programs and future expenditures. These
statements address future events and conditions and, as such, involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the statements.
Such factors include, among others, the effects of general economic conditions,
a reduction in the demand for the Company's drilling services, the price of
commodities, changing foreign exchange rates, actions by government
authorities, the failure to find economically viable acquisition targets, title
matters, environmental matters, reliance on key personnel, the ability for
operational and other reasons to complete proposed activities and work
programs, the need for additional financing and the timing and amount of
expenditures. Energold Drilling Corp. does not assume
the obligation to update any forward-looking
statement.