New Contract Wins

RNS Number : 7324P

Capital Drilling Limited

04 October 2013

 



For Immediate release                                                                                                                                 04 October 2013

Capital Drilling Limited

("Capital Drilling" or "the Group")

New Contract Wins

Capital Drilling (CAPD: LN), the emerging and developing markets drilling company, is pleased to today announce new contract wins and expansions.

The new contracts are as follows:

Contract 1 - Geita Gold Mine, Tanzania (AngloGold Ashanti)

Capital Drilling Tanzania has been awarded a 5 year drilling contract with AngloGold Ashanti in Tanzania, where the Group has been operating since 2007. The contract is to provide all drilling services to the Geita Gold mine which includes development (diamond & reverse circulation), grade control and blast hole drilling. Initial rig requirements in 2014 total 9 rigs of which 4 will be sourced internally and, in the case of the blast hole rigs, through new purchases.

The contract was awarded after a competitive tender process and will formally begin on 1 January 2014. It will be supported by the Group's extensive infrastructure in Mwanza and consolidates Capital Drilling's leading position in Tanzania with operations currently active across 4 projects in the Country.

Contract 2 - Simberi & Gold Ridge Mines, PNG & Solomon Islands (St Barbara)

Capital Drilling has also been awarded a contract expansion by St Barbara at the Gold Ridge project in the Solomon Islands, in addition to a new contract award for the Simberi Mine in Papua New Guinea. The contract extension covers a term of 3 years and involves the deployment of a further 2 rigs to the region, bringing the number of rigs deployed for St Barbra in the Asia Pacific region to 4. Capital Drilling will be providing development drilling services to St Barbara and will be utilising existing assets for the contract. Mobilisation is underway with increased activity expected late 2013.

Capital Drilling will provide a further update on its performance and 2014 prospects within its Interim Management Statement scheduled for late October 2013.

Commenting on the new contracts, Jamie Boyton, Chief Executive Officer, said:

"These new contracts demonstrate the importance of our focus on organic growth within our blue chip client base, having one of the youngest fleets in the Industry and operating on long life, robust mining projects.

The Geita contract is particularly significant for the Group as it adds to our operations in Tanzania and now positions Capital Drilling as the largest drilling contractor in the country. These key contracts provide significant revenues over the next few years and with our ability to provide all of the key drilling disciplines Capital Drilling remains well positioned and is set for any recovery in the mining sector."

For further information please access Capital Drilling's website www.capdrill.com  or contact:

Capital Drilling Limited                                                                               [phone]

Jamie Boyton, Executive Chairman and Interim CEO                      

Uno Makotsvana, CFO

Liberum Capital Limited                                                                            [phone]

Clayton Bush                                                   

Richard Bootle

Buchanan                                                                                                      [phone]

Bobby Morse                                                    

Gabriella Clinkard

About Capital Drilling

Capital Drilling provides specialised drilling services to mineral exploration and mining companies in emerging and developing markets, for exploration, development and production stage projects. The Company currently owns and operates a fleet of 91 drilling rigs with established operations in Chile, Egypt, Ghana, Malaysia, Mauritania, Tanzania, Solomon Islands and Zambia. The Group's corporate headquarters is in Singapore and it has its administrative offices for South America in Santiago.

 

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