20/02/2008 - 22:00

In Brief: Haddington to buy Underdale

20/02/2008 - 22:00

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DIVERSIFIED base metals explorer, Haddington Resources Ltd, is set to acquire the mineral exploration division of Adelaide-based drilling company, Underdale Drillers, for a potential consideration of $18 million. West Perth-based Haddington has also set a new annual revenue target from its services businesses of $40 million, which it aims to achieve through acquisition of drilling companies and the expansion of existing businesses by buying additional equipment. The total acquisition cost of Underdale will be between $16 million and $18 million, depending on verification of earnings during the due diligence process. The acquisition cost will include the retirement of debt, and will be partly satisfied by the issue of $3 million worth of Haddington shares. Haddington managing director Colin McCavana said the acquisition was an important step in progressing the company’s growth and diversification strategy. Underdale operates 12 mineral exploration rigs and is currently providing drilling services in South Australia, the Northern Territory, Western Australia and Victoria.

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