VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 25, 2013) - The Energold Group (TSX VENTURE:EGD) ("Energold" or "the Company") is pleased to announce that it has expanded its energy business into Latin America with an immediate focus on Colombia. The Company has entered into a joint venture, called "EESI", with a local partner in Colombia, who is a leader in the seismic drilling business. Energold holds 60% ownership of EESI and the partner holds 40%.
The development of this long term commitment to Colombia and the region is accelerated by leveraging Energold's know-how and logistic network in South America. One of the key synergies envisioned from the acquisition of Bertram Drilling Corp. ("Bertram") was the potential to enter new energy markets where Energold already held a strong mineral presence. In doing so, the Company is immediately beginning work in Colombia with its JV partner. "Colombia is one of the fastest growing energy markets on the planet. We are excited to work with our partner and provide specific equipment to the JV that has already begun to result in new business and revenue for EESI and Energold," said Fred Davidson, CEO.
As part of the JV agreement, Energold has agreed to contribute specialized drilling equipment including underutilized seismic rigs from Energold's wholly owned subsidiary Bertram in Alberta. As well, Energold will also be contributing new equipment manufactured by Energold's wholly owned manufacturing subsidiary Dando Drilling in the United Kingdom.
The local partner in Colombia will operate EESI in conjunction with support from management at Bertram. Energold has agreed to provide fully secured loans for up to $1.5 million to EESI for equipment acquisition and working capital purposes, bearing an interest rate of 7% per annum. "We have spent significant time in Colombia working to develop an energy presence. We believe that we have found a strong partner with considerable business opportunities and envision future growth into other Latin American countries over the medium term," said Brian Bertram, President, Bertram Drilling Corp.
Energold Drilling Corp. is a leading global specialty drilling company that services the mining, energy, 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 both metals and energy sectors and has an established drill rig manufacturer, Dando Drilling International Ltd. 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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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.