Mitchell Services (ASX:MSV) has penned an agreement to acquire Deepcore Drilling for approximately $15 million cash, and 250 million fully paid ordinary Mitchell Services shares at an agreed issue price of 6.8 cents per share.
Deepcore Drilling is a privately-owned drilling business that provides services to the mining and infrastructure industries, specialising in highly technical underground mobile drilling, diamond drilling, acoustic and deep directional drilling.
The company says the acquisition “will make Mitchell Services one of the largest and most diversified drilling services providers in Australia”.
The acquisition will strengthen Mitchell Services’ market position with regard to diversity of drilling type, commodity and geography. Completion is subject to several conditions precedent but is expected to occur by the end of this calendar year.
Shares in Mitchell Services (ASX:MSV) are trading 8.9 per cent higher at 6 cents