Capital Regulatory News (CAPD)

7 Jun 2010 07:00

Capital Drilling Ltd Admission to Official List & RNS Number : 1378N Capital Drilling Limited 07 June 2010 Immediate Release 7th June 2010 Capital Drilling Ltd Admission to the Official List and Placing of New Ordinary Shares Capital Drilling Ltd ("Capital Drilling" or "the Group"), the mineral drillingservices company with a focus on emerging markets, is pleased to announce its admissiontoday to the Official List of the UK Listing Authority and to trading on the MainMarket of the London Stock Exchange. Highlights include: · Admission to the Official List of the UK Listing Authority (Premium Listing) · 33.8m New Shares placed at 61.5p per share · Gross proceeds of £20.8m, of which £13.6 million was primary · Market capitalisation of approximately £82.8 million Principal Terms of the Placing The Company has raised gross proceeds of £13.6 million (circa US$20 million) by wayof a Placing of 22.1million shares at 61.5p per share. The Placing, which was conductedby Liberum Capital Limited, who acted as Sponsor, financial adviser and broker tothe placing, comprised the issue by the Company of 22.1 million New Shares and thesale of 11.7 million Sale Shares by the Selling Shareholders (with shareholders sellingpart of their stakes in order to increase the Company's free float to the LSE'sminimum 25% level). The New Shares being issued by the Company and the Sale Sharesbeing sold by the Selling Shareholders under the Placing represent approximately16.4 per cent. and 8.7 per cent., respectively, of the 134,592,800 shares in issuefollowing Admission. Further details of the placing are set out in the prospectus published by the Companywhich is available at the offices of Nabarro LLP (Lacon House, 84 Theobald's Road,London, WC1X 8RW), Liberum Capital Limited (Ropemaker Place, Level 12, 25 RopemakerStreet, London, EC2Y 9AR) and Capital Drilling Ltd (Canon's Court, 22 Victoria Street,Hamilton, HM12, Bermuda). Commenting on Capital Drilling's listing in London, Brian Rudd, CEO, said: "Capital Drilling's admission to the Official List and the placing of shares hasbeen a great result in challenging markets. That investors have come into the Companyat this time should be viewed as a ringing endorsement of the strength, quality andfuture potential of the business. With the placing complete we will look to capitaliseon the huge growth potential in the sector and to create material value for our newshare holders." For further information please access Capital Drilling's website www.capdrill.comor contact: Capital Drilling Jamie Boyton, Executive Chairman +65 6227 9050 Brian Rudd, CEO Liberum Capital Limited Clayton Bush +44 (0)20 3100 2000 Buchanan Communications Bobby Morse +44 (0)20 7466 5000 Chris McMahon The contents of this announcement have been prepared by and are the sole responsibilityof Company. Liberum Capital Limited, which is authorised and regulated in the UKby the Financial Services Authority, is acting as sponsor, financial adviser andbroker exclusively to the Company and no one else in connection with Admission orthe Placing and will not regard any other person as its client in relation to Admissionor the Placing and will not be responsible to anyone other than the Company for providingthe protections afforded to clients of Liberum Capital Limited, or for providingadvice in relation to Admission, the Placing, this announcement or any transactionor arrangement or matter referred to herein. About Capital Drilling Capital Drilling provides specialised drilling services to mineral exploration andmining companies in emerging markets, for exploration, development and productionstage projects. The Company owns and operates a fleet of 64 drilling rigs with establishedoperations across countries in Tanzania, Zambia, Egypt, Pakistan, Mozambique, PNG,Eritrea, Hungary and Chile. The Group's corporate headquarters is in Singapore andit has administrative offices in South Africa and Serbia. Principal Business Activities Drilling services are required by the minerals, environmental (including water) andenergy industries. The Group currently provides services to mineral exploration and mining companies.Drilling services are critical for mining companies to discover deposits, and to estimatethe size and quality of reserves. The Company provides drilling services for exploration, developmentand production stage projects. Principal Markets The Group currently has operations in Africa, Asia, Latin America and Eastern Europe,with a focus on emerging markets. Due to maturing markets and increased regulatory hurdles for miningin developed countries, many mining and exploration companies are now looking towards resource-richemerging markets for their production growth. Clients The Group's key clients are global major mining companies and emerging producersdeveloping large projects. The Company is focused on building strong and long lasting relationshipsand key clients include African Barrick Gold plc, AngloGold Ashanti Limited, Barrick Corporation, Centamin Egypt Limited, Equinox Minerals Limited and Riversdale Mining Limited. Competitive Environment and Strengths The drilling services industry for minerals is highly fragmented, with a few majormarket participants and a large number of small, often family-run, regional or local companies. Key largeindustry participants in the global mining drilling services industry include Boart LongyearLimited, Layne Christensen Co. and Major Drilling Group International Inc. The Directors believe the Group's competitive strengths are as follows: · Strong client relationships and a sustainable client base · Experience and relationships in emerging market countries · Emphasis on health and safety and the environment · Focus on large scale multi-rig development and production stage drilling projectsby major mining companies which reduces the Group's earnings volatility and provides more sustainable margins · Experienced management and operational teams with proven operating track record · Expertise in specialised drilling projects Reasons for Admission and Use of Proceeds The Group is seeking a listing to establish a capital structure for the Company topursue growth opportunities and its business strategy, including attracting and incentivising employees.In addition, the Directors believe that a premium listing of the Common Shares on the London StockExchange's Main Market for listed securities will be helpful in raising the profile of the Company. The Company will use the net proceeds of the Placing of the New Shares as follows(in order of priority): · approximately $3,000,000 to repay existing debt immediately following Admission; · approximately $11,000,000 to purchase new drilling rigs and associated supportequipment in order to fulfil existing and new client contracts, as and when required; · approximately $2,000,000 for working capital purposes associated with maintenanceand investing for the increased fleet size; and · approximately $2,000,000 to refurbish existing drilling rigs. This information is provided by RNS The company news service from the London Stock Exchange