New Sudbury Office Increases Orbit Garant’s Presence in Northern Ontario
Val-d’Or, Quebec, November 8, 2010 — Orbit Garant Drilling Inc. (TSX: OGD) today announced that it has acquired Advantage Control Technologies (ACT). As part of the transaction, Orbit Garant will acquire specialized technologies and equipment, while also expanding its operations in Northern Ontario.
ACT has developed technology designed to reduce the operating costs associated with mineral drilling. These technologies, which have been extensively tested by Orbit Garant, incorporate computerized monitoring and control which reduces both the labour and consumables components of mineral drilling. The technologies are applicable both to new drills and to Orbit Garant’s existing fleet. As a result, Orbit Garant believes that it will begin to generate cost efficiencies from the acquisition during the current fiscal year.
“We are very excited about this acquisition,” said Eric Alexandre, President and Chief Executive Officer of Orbit Garant. “With the addition of these advanced technologies we are able to significantly increase productivity, improve health and safety and optimize labour efficiency that will flow through to our clients. Adopting these new sophisticated technologies will improve our efficiency while enhancing our low cost, vertically integrated industry-leading customer service.”
The purchase price consists of $2.9 million in cash and the equivalent of $750,000 in common shares of Orbit Garant, at an issue price of $5.65 per share. In addition, Orbit will pay up to $2.4 million over three years based on the profitability of contracts already in place and the operating results of the Sudbury office. Orbit Garant is also acquiring some equipment related to this business for an amount of $375,000 payable in cash.
Importantly, Richard Ross and Bert Stahl, the owners of ACT, have entered into five-year employment contracts with Orbit Garant. They will manage a new Sudbury-based office for Orbit Garant.
Richard Ross joins the Orbit Garant team as the Company’s Sudbury branch manager. With a background in geological engineering, Richard has more than 20 years of surface and underground drilling experience. His previous work experience with Inco and other prominent mining companies offers important industry knowledge to the Orbit team, significantly increasing the Company’s management depth as well as its understanding of the Northern Ontario region.
Bert Stahl joins the Orbit Garant team as the Company’s head of Research and Development. As founder of Advantage Control Technologies in 1994, Mr. Stahl brings years of technological experience to the Orbit Garant team, specifically relating to mining equipment automation and drilling optimization technologies.
“This acquisition is directly in line with our strategy and we are very pleased to have Richard and Bert join our team,” added Mr. Alexandre. “We will significantly improve our productivity while also expanding our presence in Northern Ontario. With new operations based in Sudbury, we will have greater access to a large customer base and prestige clients in one of Canada’s most prolific mining regions. A key competitive advantage for us has been our proximity to clients in Quebec. With this acquisition, we are duplicating this “radius” business model into Ontario.”
“Combining our leading edge technology with Orbit Garant’s expanding operations represents an excellent strategic fit,” said Mr. Ross and Mr. Stahl. “Orbit Garant will be immediately able to employ our sophisticated technology, enabling the Company to continue to offer its customers industry-leading service. Over and above this, we are excited to become part of the Orbit Garant management team and are committed to helping the Company increase its presence in the Sudbury region and throughout Northern Ontario.”
About Orbit Garant
Orbit Garant is one of the largest Canadian-based drilling companies, providing both underground and surface drilling services in Canada and internationally through its 159 drills and more than 600 employees. Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production.
Forward-looking information
This press release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Orbit Garant Drilling Inc. (the “Company”) and the environment in which it operates. Forward-looking statements are identified by words such as “believe”, “anticipate”, “expect”, “intend”, “plan”, “will”, “may” and other similar expressions. These statements are based on the Company’s expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the Company’s regulatory filings available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.
For further information:
| Eric Alexandre President and Chief Executive Officer (819) 824-2707 Ext. 233 | Derek Henderson Investor Relations (416) 447-4740 Ext. 232 |