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Foraco International (TSX: FAR), a leading global provider of mineral and water drilling services, has been awarded a major contract with BHP Olympic Dam.
This contract is for exploration and evaluation drilling services near Olympic Dam mine complex, involving diamond drilling and is signed for three years firm plus two optional years extension. It will involve a total of five rigs, most of them being remotely operated, and has a total face value of A$80 million, or $60 million, excluding options. If the two-year options are exercised, the face value could reach $90 million.
“We have been working hard to market our technical expertise in deep diamond directional drilling services around the world for nearly a decade now and are very excited to start a new relationship with BHP. This is a great reward for all our employees, field crews and support teams” said Daniel Simoncini, CEO of Foraco.
“We believe long term relationships with leading global companies like BHP are an efficient way to increase our profitability resilience, while providing good quality professional life to our employees with who we can share a decent time horizon long enough to develop them, train them and make them safer and happier,” he added.
