Ausdrill clears hurdle for Barminco acquisition

Ausdrill is a step closer to completing its takeover of underground mining services company, Barminco.

The company’s shareholders voted in favour of the proposed acquisition at its annual general meeting (AGM) yesterday.

Ausdrill will now work towards satisfying the remaining conditions of the deal to complete the acquisition by October 31.

The company launched the takeover offer for Barminco, its African Underground Mining Services (AUMS) joint venture partner, in August.

Under the deal, Ausdrill will acquire the equity and equity-like instruments in Barminco in exchange for 150.7 million of its shares and $25.4 million in cash.

Ausdrill chairman Ian Cochrane said the acquisition would be a transformative deal for the company.

“The two businesses are a great fit and by brining Barminco into Ausdrill we will create Australia’s second largest mining services company by revenue, which has a unique combination of surface and underground technical expertise,” Cochrane said.

Barminco has announced a pair of contract extensions in the past week, including a $240 million agreement with Independence Group at the Nova nickel-copper-cobalt mine in Western Australia yesterday.

Last week, Barminco revealed it had secured a contract extension with Gold Fields at the Agnew gold mine in Western Australia worth $335 million.

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