Swick Mining Services will raise $15 million to support the company’s growth opportunities.
Managing director Kent Swick said the additional funding gave the company flexibility to pursue future organic and inorganic growth opportunities for the business.
“By delivering on our strategy, Swick is well placed for growth in the 2020 financial year, underpinned by our strong order book,” Swick said.
“We are also seeing additional opportunities to increase our rig fleet utilisation both in Australia and abroad, with a target of 70 full time equivalent underground rigs in work by financial year-end, up from an average of 53.6 in the 2019 financial year.
Swick is one of Australia’s largest mineral drilling contractors, providing high-quality underground and surface drilling services.
The Western Australia-based company will issue new shares in two tranches, while also offering a $2 million share purchase plan to existing shareholders.
This year, Swick has secured drilling contracts worth $210 million from BHP, Kirkland Lake Gold, Newmont Mining and Northern Star Resources.
The company was also awarded a three-year extension at the Nevada Gold Mines Joint Venture in the United States, expanding the contractor’s work in hand to $353 million over three continents.