Timmins-based Norex Drilling to be acquired in $19.7M deal.

Timmins-based Norex Drilling Ltd. will be acquired by Major Drilling in a $19.7-million deal.

Major Drilling, which is headquartered in Moncton, N.B., made the announcement on Oct. 7.

The company is one of the largest drilling companies in the world, with field operations and offices in Canada, the United States, Mexico, South America, Asia, Africa and Europe.

The agreement will include a cash payment of $15.2 million payable on closing of the transaction, subject to working capital adjustments; $2 million paid by the issuance of common shares of Major Drilling, valued on the closing of the transaction (subject to TSX approval); and an earn-out of $2.5 million payable in cash following the third anniversary of closing.

"Norex has been operating successfully in the Ontario marketplace for some 40 years, and has a solid reputation with its clients," said Denis Larocque, president and CEO of Major Drilling, in a news release.

"The acquisition of Norex is a unique opportunity for Major Drilling to gain a strong position to service our customers in both surface and underground exploration drilling...