Mastermyne will acquire Diversified Mining Services for $20 million.
DMS is an unlisted public Queensland based mining maintenance, engineering, and contract mining company.
According to Mastermyne it will acquire all of DMS's outstanding shares by way of a scheme of arrangement, with the acquisition structured as 15.6 million Mastermyne shares valued at $9.7 million on Mastermyne shares issued to DMS and $10.3 million in cash.
The cash component will be used to pay down DMS's debt and aid in restructuring the company.
It is not yet known how this restructuring will affect DMS's existing 300 employees.
Speaking on the acquisition, Mastermyne's CEO Tony Caruso said his company has flagged for some time an acquisition to expand its services.
In regards to DMS, he said it "is a well respected service provider which will significantly increase the range of services that the Mastermyne Group can offer to the mining and other industries".
"We look forward to them joining the Mastermyne team and are confident that thsi acquisition will not only bring major benefits to the company but will also provide ongoing opportunities for the DMS and Mastermyne management and workforce."