Ausdrill completes raising for Barminco acquisition

Ausdrill rigs at night. Image: Ausdrill.

Ausdrill has completed the retail component of its $250 million entitlement offer on Barminco, thus finalising its equity raising that was first announced in August.

Ausdrill and Barminco are joint venture (JV) partners of gold company African Underground Mining Services (AUMS), which operates in several African nations including Tanzania, Ghana and Faso. Ausdrill’s acquisition of Barminco will lead to Australia’s second largest mining services company, working across both Australia and overseas.

The retail component of Ausdrill’s entitlement offer raised about $58 million, with around 76 per cent of eligible shareholders taking part. This increased to 86 per cent, with the addition of $8 million in additional shares secured through an oversubscription facility. Allotment of these shares is expected to take place on September 12.

Barminco’s expertise as an underground hard rock specialist is intended to bring growth and diversity to Ausdrill, which primarily focuses on surface operations as a company.

Acting Ausdrill chief executive officer Theresa Mlikota said, “Following on from the strong support received under the institutional component of the entitlement offer, the success of the retail entitlement offer demonstrates the confidence of Ausdrill’s shareholders in the acquisition of Barminco and the broader Ausdrill business.”

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