Major Drilling Group enters agreement with Norex Drilling Limited

Major Drilling Group International Inc. says it’s entered into an agreement to acquire all of the issued and outstanding shares of Norex Drilling Limited. The family-owned drilling company and a leading exploration drilling contractor is based in Timmins. The purchase price for the acquisition is valued at an amount up to $19.7 million, the break down of which is below.
• cash payment of $15.2 million payable on closing of the transaction, subject to working capital adjustments;
• $2 million paid by the issuance of common shares of Major Drilling, valued on the closing of the transaction (subject to TSX approval); and
• an earn out of $2.5 million payable in cash following the third anniversary of closing.
The cash portion of the purchase price is expected to be funded from Major Drilling’s current cash balance.