Sale of Every Day underground drilling

THE DRILL SERGEANT: Queensland-based Every Day Mine Services Limited has entered into an agreement to sell its underground diamond drilling (UDD) division for $1 million to ASX-listed Western Australian-based drilling company, Swick Mining Services Limited.

EDMS said its decision was based on its increasing focus on its drilling services activities on surface drilling.

This focus had resulted in the UDD division accounting for only approximately 5% of the company’s annual revenues.

EDMS determined that the best course to take was a sale of this division, which comprises seven drill rigs, light vehicles, a work shop and selected inventory.

The 12 staff members that make up the UDD division have all been offered employment by Swick.

EDMS will use the proceeds from the sale in part to pay down debt associated with the UDD division’s equipment (approximately $0.6 million), and the remainder (approximately $0.4 million) will be applied to working capital.

“EDMS recently undertook a strategic review of its businesses that has led to a renewed focus on EDMS’ surface fleet and other mine services,” EDMS managing director Stephen McCoy said in the company’s ASX announcement.

“As a result, the underground diamond drilling division has been sold as it was non-core to the company’s future growth.

“The sale of this division is an excellent outcome for the division’s staff and customers.

“The sale of EDMS’ underground diamond drilling division will free up resources to allow the company to pursue attractive growth opportunities.”