Aquirian and Topgroup to Establish Drillforce WA Partnership Following $2.3m Strategic Placement
Mining consultancy group Aquirian (ASX: AQN) has completed a $2.3 million strategic share placement with mine services solutions company Topgroup, and entered into an agreement to establish the Drillforce WA drilling and blasting joint venture.
The venture will leverage the combined expertise, assets and technology of both companies — including Topgroup’s exploration drilling services subsidiary Topdrill — to deliver a unique service offering to the market in a capital-light fashion for Aquirian.
It will offer an end-to-end drill and blast solution to clients, incorporating Aquirian’s patented collar keeper system for stabilising blasthole cuttings, collars, and pre-conditioned columns across Topgroup’s large, modern fleet.
Strong Company Validation
Aquirian managing director Greg Patching said the Drillforce WA joint venture represented a strong validation of the company’s proprietary technology, expertise, and market position.
“Topgroup has a strong reputation of innovation and delivery, and we share the same mindset around innovation, safety, and productivity — this partnership will provide a huge opportunity for us to lift industry performance standards while removing inefficiencies and costs from customer site operations,” he said.
“Matching one of WA’s mining service leaders with our energetics, technology, and blasting expertise will provide real synergies across the drill and blast value chain.
“From repeatable hole quality through to the final blast result, Drillforce WA will deliver improved oversight and management of ore grade preservation and fragmentation control for our clients.”
Terms of the Placement
Under the terms of the placement, Aquirian will issue 5.2 million new and fully-paid priced at $0.45 each to Topgroup for approximately 4.9% equity in the company.
The issue price represents a 2.5% premium to the 10-day volume weighted average price of $0.44, and a 10% premium to the 15-day VWAP of $0.41 on 17 October.
Aquirian will use the funds to accelerate the commercialisation of its technology portfolio, as well as for general working capital.
Aquirian subsidiary TBS Mining Solutions secured a $4.2m agreement with Papyrus Australia (ASX: PPY) in August for the domestic manufacture and supply of biodegradable collar keeper products over an initial term of three years.