VANCOUVER – Mineral services company Energold Drilling Corp. (TSXV:EGD) says it has struck a deal to buy Bertram International Corp., a Carbon, Alta.-based specially drilling company for the oil and gas industry.
The pricetag of Wednesday’s announced deal is $18 million – $15 million in cash and shares and the assumption of $3 million in debt and lease obligations.
The deal is subject to approval from Bertram’s main lender, the Vancouver mine driller said in a release.
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Bertram is a diversified specialty driller servicing the energy sector in Canada and the U.S. The company is nearly 50 years old and has 119 rigs and average annual revenues of more than $38 million over the last five years.
It is involved in specialized drilling and coring services in the oilsands and also provides diamond and pipeline drilling services.
Energold said the Bertram deal provides “a unique opportunity to acquire, on an very accretive basis, a proven leader of specialty drilling services in a niche, high growth area of the energy sector.”
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The transaction will “diversify Energold’s revenue sources and build the solid organization framework to dramatically scale operations of the Energold Group in pursuit of its overall strategic goal to become a leading international specialty drilling services company with above average returns compared to its peer group.”
Energold is a diamond drilling company that services the international mining industry. The company also owns seven million shares of Impact Silver Corp.
In Wednesday trading on the TSX Venture Exchange, Energold shares rose 10 cents to $4.37, a gain of more than 2.3 per cent.
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