Today (November 4, 2013) the Western Australian company Swick Mining Services Limited (“Swick”), a leading provider of high quality and high value underground and surface mineral drilling servicesagreed to purchase a significant shareholding and undertake further ongoing investment in Orexplore AB.
Swick Mining Services Ltd (ASX:SWK) is one of Australia’s largest mineral drilling contractors, providing high quality underground and surface drilling services to a diverse group of mining houses and across a spread of commodities. The Company has a strong reputation for innovation in rig design and drilling practices that delivers improvements in productivity, safety, versatility and value. Swick has a global presence with Operational revenue from Australia, Canada, United States and Europe.
Orexplore AB is a mineral analysis and measurement technology Company that has created a unique, patented portable X-ray mineral scanner that is currently in the design and development stage and will ultimately allow accurate, real time assay and structural analysis in the field. The product has the potential to perform rapid, exact analyses of the elemental composition in ores, which greatly reduces sampling lead-time and brings both environmental and economic benefits at the prospecting stage. Orexplore began operating in 2010, and since then has made significant progress in its research and development.
Swick’s ongoing investment in Orexplore will be over a five year period, subject to agreed research and development milestones. Swick’s initial investment is the purchase a 23% shareholding in the Company from a seed shareholder for SEK6.6m. A further equity investment of SEK16.6m over 2.5 years will increase Swick’s equity ownership in Orexplore AB to 52%.
In addition to the equity funding, Swick has committed to providing a further SEK16.6m over a further 2.5 year period through a Convertible Debt structure if required to finalise development and commercialisation of the products. The total investment over that five year period, including the initial upfront acquisition of a 23% shareholding, will therefore be up to SEK39.8m. The new capital investment into Orexplore will be used for further development and commercialisation of a range of products.
Swick has also entered into other agreements with Orexplore AB, which provide Swick with certain marketing rights over Orexplore products, as well as research and development services to develop additional products for application in Swick’s core markets.
Commenting on the transaction, Kent Swick said “The investment in Orexplore is consistent with Swick’s commitment to being a leading innovator within the mineral drilling industry, through research and development activities that drive improved productivity and efficiency. The investment will also provide an excellent opportunity for Swick to leverage its already strong position and reputation within the market to potentially provide a more diversified range of valuable products and services to our clients in the future.”
Commenting on the technology, Mr. Swick added “I am very excited by the development of this technology and when commercially released, this could potentially be the most significant development in the drilling industry since the invention of the hydraulic, top drive drill rig. The ability to provide detailed sample information to the client’s technical team as the samples are extracted will add enormous efficiency to the mining industry and greatly increase the chances of exploration success. ”
Orexplore's Managing Director Kevin Rebenius stated "With Swick as a long term industrial partner, we will be able to develop and industrialize the Orexplore product range faster and access world wide markets for our unique mineral analysis solutions.”
For further information regarding this announcement, please contact the following:
Kent Swick, Managing Director, Swick Mining Services +61 8 9277 8800
Kevin Rebenius, Managing Director, Orexplore AB +46 707 95 99 84
Orexplore develops portable, easy-to-use and extremely accurate equipment for analyzing the composition of non-organic materials, primarily minerals. The portable instrument enables in situ analysis and with unprecedented accuracy for in-field instruments, replacing today’s need of sending samples for laboratory analysis. This means significant increase of efficiency in the exploration and mining process.