EDMS completes first post-listing acquisition

Established mining services company, Every Day Mining Services has complete....

  Established mining services company, Every Day Mining Services has completed the acquisition of an underground diamond drilling business from Broken Hill-based private company, Silver City Drilling.The acquisition will further boost the company’s new underground diamond drilling division to a total of 11 surface rigs and five underground rigs and three down-the-hole hammer rigs.EDMS Managing Director, Roger Jackson said the new drilling division was launched six weeks ago, prior to the ASX listing of EDMS and has performed strongly since then.“The underground diamond drilling business is forecast to generate approximately $5m in new revenue to EDMS in the 2008 financial year and contribute strongly to the bottom line,” Mr Jackson said.“EDMS has been leasing Silver City’s equipment and utilising their employees under a labour hire agreement until the completion of this acquisition,” he said. Mr Jackson said the addition to the company’s underground diamond drilling division had further strengthened the company’s relationship with CBH Resources and the Peak Gold mine. The assets EDMS has acquired from Silver City Drilling include five underground diamond drill rigs, consumables, including rods and spare parts, eight vehicles for transporting employees, and freehold title to three industrial lots, with works depot lots in Cobar.The addition of the underground diamond drilling business complements the three surface drill rigs added to the EDMS fleet last week, following its $8m IPO and listing on the Australian Stock Exchange in late June.