North Mara Drilling Contract Win

RNS Number : 8749I

Capital Drilling Limited

14 December 2015

 

For Immediate Release

14 December 2015

Capital Drilling Limited

("Capital Drilling", the "Group" or the "Company")

North Mara Drilling Contract Win

Capital Drilling Limited (CAPD:LN), the emerging and developing markets focused drilling company, today announces it has been awarded a new contract to undertake production drilling services for Acacia Mining PLC's (Acacia) North Mara Gold Mine, following a competitive tendering process. 

Capital Drilling will provide blast hole and grade control drilling services to the site's open pit operations.  Mobilisation has recently commenced, with Capital Drilling delivering existing rigs on a temporary basis, before three new replacement blast hole rigs are delivered in the coming months. A total of 5 rigs are to be deployed to the project in addition to the 1 grade control rig that was on contract and included in the recent tendering process.

The Company will utilise its extensive infrastructure located in the nearby Mwanza region to support the project.  The contract is scheduled to commence 1 January 2016 for a period of two plus two years. Revenue is expected to be approximately $1m per month and the contract will further consolidate Capital's position as the leading drilling services contractor in the East African market. 

Other Contract Developments:

In addition to the Acacia contract, the company has recently had confirmation of contract extensions with three of its existing long term clients.  These include:

·   Anglo Gold Ashanti - contract extension to 2020 at its Geita Gold Mine, Tanzania, including the addition of underground exploration services;

·     Centamin - contract extension to 2020 at its Sukari Gold Mine, Egypt; and

·     Kinross - contract extension to Dec 2016 at its Tasiast Gold Mine, Mauritania. 

Mark Parsons, Capital Drilling's Chief Executive Officer, commented:

"We are very excited about this new partnership with Acacia.  We have extensive experience in this region, and have proven we can deliver on our clients' expectations, even in challenging conditions.  We now look forward to extending our safe and professional drilling services to the North Mara mine site. 

This new contract also aligns with our corporate growth strategy of maintaining our focus on the emerging African markets, continuing to utilise our existing capacity and importantly, developing long term production contracts to support our revenue base. We are also pleased to be able to announce extensions on three of our largest clients, further demonstrating our long term partnerships and best in class services."

For further information please access Capital Drilling's website www.capdrill.com or contact:

Capital Drilling Limited                                                     [phone]

Jamie Boyton, Chairman                      

Mark Parsons, Chief Executive Officer

GMP Securities Europe LLP                                              [phone]

Richard Greenfield

Buchanan                                                                          [phone]

Bobby Morse                                                    

Gabriella Clinkard

About Capital Drilling

Capital Drilling provides specialised drilling services to mineral exploration and mining companies in emerging and developing markets, for exploration, development and production stage projects. The Company currently owns and operates a fleet of 97 drilling rigs with established operations in Botswana, Chile, Egypt, Ghana, Mauritania, Peru, Tanzania and Zambia. The Group's corporate headquarters is in Mauritius and it has its administrative offices for South America in Santiago.

 

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