MONCTON, N.B. — Major Drilling Group International Inc. has signed a deal to buy South American specialty drilling contractor Explomin Perforaciones in a deal worth up to US$85 million.
Under the agreement for the company based in Lima, Peru, Major Drilling will make an upfront cash payment of US$63 million.
It will also pay up to an additional US$22 million over the next three years based on the achievement of certain financial milestones.
Explomin offers specialized services including deep hole, directional, and high-altitude drilling as well as underground drilling operations.
The majority of the company's operations are in Peru while it also services markets in Colombia, the Dominican Republic and Spain.
The deal will see Major Drilling will acquire a fleet of 92 well-maintained drills, bringing the total rig count to 701.
This report by The Canadian Press was first published Nov. 5, 2024.
Companies in this story: (TSX:MDI)
The Canadian Press