Swick raises $17.5m for drill rigs

Drilling specialist Swick Mining Services has raised $17.5 million that will be used to return a number of idle rigs to work over the next six months and for new growth opportunities.

The announcement is below:

Swick Mining Services (ASX:SWK) is pleased to announce the placement of 43.75 million shares at $0.40 per share to raise gross proceeds of $17.5 million ("Placement").

Proceeds from the Placement will be applied to fund the return to work of a large number of rigs over the next six months and potential new growth opportunities. Recent contract wins will result in a record 63 rigs in work by June 2010 (an 18 rig increase from 31 December 2009), with improving market conditions providing the potential for further upside.

Euroz Securities Limited acted as Lead Manager to the Placement.

The Placement to institutional and sophisticated investors will be made in two tranches.

Tranche one will comprise the placement of 28.95 million shares at an issue price of $0.40 per share to raise $11.6 million, utilising the Company's available 15% capacity under the ASX Listing Rules. Settlement of tranche one is expected to occur on 10 March 2010.

Tranche two will comprise the placement of 14.8 million shares at an issue price of $0.40 per share to raise $5.9 million, subject to shareholder approval at a general meeting to be held in mid April 2010. The Company's Managing Director, Mr Kent Swick, has committed to participating in tranche two of the placement, subject to shareholder approval.

Swick Mining Services requests the immediate lifting of its suspension as a result of the release of this announcement.