VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 17, 2013) - Energold Drilling Corp. (TSX VENTURE:EGD) ("Energold", "Energold Group", "the Group", or "the Company") is pleased to announce that Dando International Drilling Ltd. ("Dando"), the Company's manufacturing division, has established a wholly owned subsidiary, Dando Drilling Services Ltd. ("DDS"), to be dedicated to the development of water drilling as a new specialty service for the Group. DDS has entered into a 60/40 joint venture with an African water drilling company. The initial contract is estimated to be worth up to $500,000 for 2013.
Dando will initially commit a Watertec 40 truck-mounted rig and a number of ancillary vehicles to the operations, with the option to add additional rigs, as client demand increases. The Dando Watertec 40 is a proven deep water well drilling rig, used throughout the world and can work in the most demanding environments. With a powerful 40,000 kilograms pullback, it can drill water well holes to a 4-1/2 inch diameter and a depth of over 2,000 meters. Dando has sold Watertec 40 models to a recognizable list of clients including; international organizations, governments, numerous non-governmental organizations (NGOs), contracting companies, and more. Additional information on the Watertec 40 rig can be found on the Company's website at http://www.energold.com/s/Mineral.asp?ReportID=564451.
Energold is excited to have a formal opportunity to capitalize on this growing and necessary segment of the marketplace. As water becomes increasingly scarce for commercial and public use, clients in this category have typically been government agencies rather than private enterprises, such as the mining industry. Establishing partnerships of this kind should contribute to ongoing revenue stabilization as funding for such projects tends to be less exposed to market conditions. In developing markets where Energold's efforts are focused on, the Organisation for Economic Cooperation and Development (OECD) estimates that by 2025, water infrastructure and spending will top $1 trillion per year, nearly triple the amount for investments in electricity and transport. The public sector currently contributes 75% of water supply and sanitation infrastructure investment, with Official Development Assistance (ODA) for developing countries, totalling $8.3 billion in 2009-2010 compared to $3.3 billion in 2002-2003, an annualized growth of over 12%.
As part of a value-added strategy to increase convenience for the Group's clients, Energold has begun to offer these water drilling services, further confirming Energold's position as a one-stop commodity drilling contractor. Energold believes water services will appeal to its existing mineral and energy clients, many of whom are facing rising costs together with a need to find fresh water wells near mine sites, including de-watering or water recycling activities as they apply environmental controls.
The DDS joint venture brings together the water drilling business network of the local partner and Dando's technical skills and heritage. Dando first drilled for fresh water in London, England almost a century and a half ago during the cholera outbreak. With its heritage and engineering reputation, Dando has been recognized as a high quality contractor and manufacturer of reliable and robust commodity drilling rigs ever since.
Energold Drilling Corp. is a leading global specialty drilling company that services the mining, energy, water, and manufacturing sectors in 22 countries, from early stage exploration to mine site development, having a social conscience and using an environmentally sensitive approach to drilling. The members of the Energold Group are Energold Drilling Corp. and its subsidiaries; Bertram Drilling Corp. and its subsidiaries; and, Dando Drilling International Limited and its subsidiaries. Energold also holds 6.98 million shares of IMPACT Silver Corp., a profitable silver producer in Mexico.
On behalf of the Directors of Energold Drilling Corp.,
Frederick W. Davidson, President, CEO
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, work programs and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the effects of general economic conditions, a reduction in the demand for the Company's drilling services, the price of commodities, changing foreign exchange rates, actions by government authorities, the failure to find economically viable acquisition targets, title matters, environmental matters, reliance on key personnel, the ability for operational and other reasons to complete proposed activities and work programs, the need for additional financing and the timing and amount of expenditures. Energold Drilling Corp. does not assume the obligation to update any forward-looking statement.
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