Foraco receives $150-million (U.S.) in contracts

Executive Summary

• Foraco International SA has secured three long-term drilling contracts with Tier 1 mining customers in Canada and Chile, totaling approximately $150 million (U.S.) in expected value.
• The contracts are for a duration of three years and cover mine development and resource definition drilling, utilizing a diverse range of services including large-diameter coring, deep reverse circulation, and underground core drilling.
• Mobilization is already underway in Chile, while the Canadian contracts represent renewals of existing projects for an additional three years, engaging up to 20 drills in Canada and 4 in Chile.

Key Details

• Total Contract Value: Approximately $150 million (U.S.).
• Contract Duration: Three years for each of the three awarded contracts.
• Geographic Scope: Canada and Chile.
• Customer Profile: Tier 1 mining customers.
• Scope of Services:
  • Mine development and resource definition drilling.
  • Large-diameter (nine-inch) coring.
  • Deep reverse circulation.
  • Deepwater wells.
  • Dual rotary and flood reverse.
  • Surface and underground core drilling.
• Resource Allocation:
  • Up to 4 drills in Chile.
  • Up to 20 drills in Canada.
• Operational Status:
  • Mobilization activities are already under way in Chile.
  • Canadian contracts extend existing projects renewed for a further three years.
• Strategic Context: CEO Tim Bremner noted the awards validate the company's focus on long-term partnerships with Tier 1 customers in stable jurisdictions and highlighted a strengthening tender pipeline supported by expanding drilling programs amid high copper and gold prices.

Notable Quotes

• "We are very pleased to have been awarded these three projects, all within a relatively short time frame... These awards reflect Foraco's ability to deliver a highly diversified range of drilling services at a single mine site, along with the mutual trust we have built with each of these customers over the years. They also validate our strategic focus on securing long-term partnerships with Tier 1 customers operating in stable, safe jurisdictions." — Tim Bremner, Chief Executive Officer
• "Foraco's tender and bidding pipeline continues to strengthen, supported by well-capitalized mining producers and developers expanding drilling programs amid copper and gold prices near all-time highs." — Tim Bremner, Chief Executive Officer