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FML is a Nedelec, Quebec based mineral exploration drilling contractor, operating seven drill rigs in Quebec and Ontario. LDI is acquiring all drilling equipment, support equipment and vehicles, inventory, existing contacts, and personnel. FML's un-audited internal financial statements reported revenues of over $15 million for the 11 months ended May 31, 2008. After this acquisition LDI will have a total of 12 drill rigs for their Canadian operations.
Ron Goguen, President & CEO of Landdrill, stated "We are excited to add the experience and expertise of the FML team to the Landdrill family. FML has over 15 years of drilling experience and over this time they have developed a high quality reputation for their services. The addition of their 7 drills to our 5 drills gives us a real presence in the Eastern Canadian mineral drilling market".
The purchase price of $5.4 million was financed from a $3.7 million senior equipment loan and a $2.0 million non-brokered private placement. The private placement consists of convertible debentures in principal amount equal to the subscription price, maturing in one year, that bear interest at a rate of 18% per annum and are convertible to common shares of the Company at the rate of one common share for $0.45 of principal amount converted. The subscribers also received 10% of their subscription price in common shares, converted at $0.40 per common share. No finder's fee will be payable in connection with this private placement. The Offering was not qualified for sale to the public by way of prospectus, therefore all securities issued in connection with the Offering will be subject to a four-month hold period in Canada, expiring November 30, 2008. Insiders have participated in this private placement for the aggregate amount of $350,000.
About Landdrill
Landdrill is a growth oriented international drilling company with a focus on the metals and minerals industry. The Company continues to explore opportunities for growth in key markets, either through establishment of new branch offices or through acquisitions as opportunities arise. The Company now has 31 drills operating in Canada, Mexico, Russia and Mongolia.
For detailed information on Landdrill International Inc., or to request a bid submission for your project worldwide, please visit our website at www.landdrill.com.
Caution Concerning Forward Looking Statements
This press release includes certain statements that would be deemed "forward-looking statements". These statements are "forward-looking" because they are based on current expectations, estimates and assumptions about the markets the Company operates in, the world economic climate as it relates to the mining industry, the Canadian economic environment and the Company's ability to attract and retain customers and to manage its assets and costs.
Actual results could differ materially from expectations if known or unknown risks affect the business, or if estimates or assumptions turn out to be inaccurate. The Company does not guarantee any forward-looking statement will materialize and, therefore, investors are cautioned not to place reliance on these forward looking statements. The Company disclaims any intention to update or revise any statement of forward-looking information whether as a result of new information, future events or otherwise.
On behalf of the Board of Directors,
Ronald Goguen Sr.
President and Chief Executive Officer
Landdrill International Inc.
(506) 388 - 8961
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
SOURCE: Landdrill International Inc.
Ronald Goguen Sr., President and Chief Executive Officer, Landdrill International Inc., (506) 388-8961
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