VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 18, 2013) - The Energold Group(1) (TSX VENTURE:EGD) ("Energold" or "the Company") is pleased to announce that it has acquired, and is in the process of acquiring new equipment in both its energy and mineral drilling divisions. The Company continues to make use of its strong balance sheet and is using cash on hand for these purchases.
The capital additions reflect specific demand requirements from existing customers. As well, following discussions with potential clients, management believes the equipment being acquired will also allow the Company to effectively compete for new business in its core North American, Central and South American and African markets as well as new opportunities in Asia and the Middle East.
Energy Service Acquisitions
The Energold Group's wholly owned subsidiary, Bertram Drilling Corp., has acquired two 1,000 meter range III capable oil sands coring drill rigs. The addition of these rigs increases Bertram's capacity to serve oil sands clients to greater depths while continuing to sustain a dedicated focus on safety and client satisfaction. The acquisition of these rigs includes all associated ancillary equipment and is ready for deployment for the upcoming winter drilling season. The Company has taken delivery of these assets.
Mineral Drilling Acquisitions
The Energold Group's mineral drilling division is currently adding two new "S-1" rigs. These rigs will be deployed to the Asian market and are those upon which the Company's leading frontier market position was founded. As well, the Company is adding three deeper capability "S-3.5" rigs manufactured by its wholly owned subsidiary Dando Drilling. These rigs are intended for the African and Middle Eastern markets. The Company also anticipates taking delivery of a heavier diamond drilling rig (Atlas Copco CS1000) for the Middle East and a 12.8 tracked reverse circulation rig, also from Dando Drilling. The acquisition of these rigs will help meet new demand in new geographical markets and delivery should be completed by mid-summer.
Dando Drilling - Manufacturing Developments
The Company continues to innovate and sell new proprietary equipment that management believes customers require in addition to simply drilling rigs. These products include measures that promote higher utilization and safety which could help increase productivity for Energold's core drilling activities, including the flagship "Mule" which is a tracked mobile system capable of moving equipment into frontier and challenging topographies operated solely with a remote controller. Management remains committed to conducting extensive R&D and improving safety levels and performance of the current S rigs as well as developing the Company's next generation, highly mobile man-portable "S-4" frontier rig for deeper targets and new mineral and water markets.
Energold Drilling Corp. is a leading global specialty drilling company that services the mining, energy, water and manufacturing sectors in 24 countries. Specializing in a socially and environmentally sensitive approach to drilling, Energold provides a comprehensive range of drilling services from early stage exploration to onsite operations for water, metals and energy sectors and has an established drill rig manufacturer, Dando. 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
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Cautionary Note Regarding Forward-Looking Statements:
This news release may contain forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievement expressed or implied by these forward-looking statements. The factors that could cause actual results to differ materially include, but are not limited to, the following: general economic conditions; changes in financial markets; the impact of exchange rates; political conditions and developments in countries in which the Company operates; changes in regulatory requirements impacting the Company's operations; the ability to properly and efficiently staff the Company's operations; the sufficiency of current working capital; and demand for the Company's drill rigs. As a result of the foregoing and other factors, no assurance can be given as to any future results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
(1) "Energold Group" is a registered trademark of Energold Drilling Corp.
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