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Last updated on April 19, 2014 at 18:42 EDT

Foraco International SA closes acquisition of John Nitschke Drilling (JND), a best in class provider of mineral drilling services company in Australia

November 19, 2012

TORONTO AND MARSEILLE, France, Nov. 19, 2012 /CNW/ – Foraco
International SA (the “Company” or “Foraco”), a leading global provider
of mineral drilling services, is pleased to announce the acquisition of
Australian mineral drilling services company JOHN NITSCHKE Drilling,
(“JND”) under the conditions previously disclosed on September 24,
2012, for approximately US$60 million through a combination of cash and
warrants giving the right to acquire a certain number of Foraco shares.

On November 15, 2012, Foraco’s shareholders approved the issuance of up
to 7,000,000 warrants to acquire shares of Foraco.

With this acquisition, Foraco now has a fleet of 308 rigs in 23
countries spanning 5 continents, with a workforce of approximately
3,800 employees.

Headquartered in Hahndorf and privately owned, JND has activities in all
of the main mining states in Australia: specifically performing
operations in Western Australia, Queensland, New South Wales and South
Australia. With a fleet of 15 rigs, JND generated approximately US$ 49
million during the twelve months ending June 30, 2012, with an EBITDA
margin of 26.7%. JND’s CEO, Jonathan Nitschke will join Foraco
Australia and will take the position of General Manager for Australian
operations.

“We are extremely pleased to have closed the JND acquisition,
strengthening our existing position in Australia by adding new regional
markets and access to additional commodities and customers. We
enthusiastically welcome JND’s managers and employees to our company
and look forward to working together in one of the most active mining
jurisdictions in the world.” says Daniel Simoncini, Foraco’s Chairman
and Chief Executive Officer.

Jean-Pierre Charmensat, Foraco’s co-CEO and Chief Financial Officer
adds, “JND’s focus on providing high quality services to major mining
and energy clients are in line with Foraco values, and we expect to
quickly consolidate and synergize operations. Historically, JND has
shown an impressive track record of growth, profitability, innovation
and has developed excellent client relationships in a very demanding
market. We believe this acquisition to be immediately accretive to our
shareholders.

Jonathan Nitschke, General Manager expressed, “We are excited to join
the Foraco team and to start working together to develop a stronger
presence in the Australian market. At JND our priority has been on
providing exceptional customer service based on top safety performance,
utilizing modern and efficient drilling techniques with the support of
a highly skilled workforce. Foraco shares these same values and brings
to JND a global perspective along with additional drilling expertise
which will result in a better customer experience overall”.

About Foraco International SA
Foraco International SA (TSX: FAR) is a leading global mineral drilling services company that provides a
comprehensive and reliable service offering in mining and water
projects. Supported by its founding values of integrity, innovation and
involvement, Foraco has grown into the third largest global drilling
enterprise with a presence in 23 countries across five continents. For
more information about Foraco, visit www.foraco.com.

Caution concerning forward-looking statements

This press release may contain “forward-looking statements” and
“forward-looking information” within the meaning of applicable
securities laws.  These statements and information include estimates,
forecasts, information and statements as to management’s expectations
with respect to, among other things, the future financial or operating
performance of the Company and capital and operating expenditures. 
Often, but not always, forward-looking statements and information can
be identified by the use of words such as “may”, “will”, “should”,
“plans”, “expects”, “intends”, “anticipates”, “believes”, “budget”, and
“scheduled” or the negative thereof or variations thereon or similar
terminology.  Forward-looking statements and information are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies.  Readers are cautioned that any such forward-looking
statements and information are not guarantees and there can be no
assurance that such statements and information will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements.  Important factors that
could cause actual results to differ materially from the Company’s
expectations are disclosed under the heading “Risk Factors” in the
Company’s Annual Information Form dated March 31, 2010, which is filed
with Canadian regulators on SEDAR (www.sedar.com). The Company expressly disclaims any intention or obligation to update
or revise any forward-looking statements and information whether as a
result of new information, future events or otherwise.  All written and
oral forward-looking statements and information attributable to us or
persons acting on our behalf are expressly qualified in their entirety
by the foregoing cautionary statements.
 

SOURCE Foraco International SA


Source: PR Newswire