Under the terms of the deal, Major Drilling will absorb Norex's 120 employees, existing inventory and support equipment. This includes a fleet of 22 drill rigs - 17 compatible, specialised surface drill units and five underground drills. It will also be taking over all existing contracts.
"Norex has been operating successfully in the Ontario [Canada] marketplace for some 40 years, and has a solid reputation with its clients. The acquisition of Norex is a unique opportunity for Major Drilling to gain a strong position to service our customers in both surface and underground exploration drilling services in the prolific northeastern Ontario region," Major Drilling president and CEO Denis Larocque said.
He also noted that both groups share similar culture and operational values.
The acquisition is expected to close on or about November 1, subject to customary closing conditions.
Major Drilling Group International, formed in 1980, has field operations and offices in Canada, the US, Mexico, South America, Asia, Africa and Europe.