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Major Drilling Group To Buy Rival Bradley Group

Major Drilling Group International Inc. (MDI.TO) announced that it has entered into an agreement to acquire all of the issued and outstanding shares of Bradley Group Limited, a family-owned drilling company based in Rouyn Noranda, Quebec, for an aggregate purchase price of $80 million, subject to adjustments and subject to certain customary closing conditions.

Major Drilling, one of the world's largest metals and minerals contract drilling service companies, said $72 million of the purchase price will be payable in cash at the closing of the acquisition with the balance of $8 million being subject to a hold-back over 3 years. In addition, at the closing of the acquisition, the corporation expects to repay a portion of the indebtedness of Bradley Group under its credit facilities in the amount of approximately $10 million, and the remaining portion of such indebtedness in the amount of approximately $5 million will effectively be assumed by the corporation. The acquisition and other related transaction costs are being financed through a $70 million 'bought deal' public offering of subscription receipts and new and extended credit facilities of $100 million in aggregate.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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