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- Vysarn’s (VYS) subsidiary, Pentium Hydro, has entered into a binding asset agreement for the purchase of two second-hand dual rotary rigs
- Under the agreement, Pentium will buy two rigs from New Zealand based-Southern Rig Hires for $2.1 million
- However, the sale will not be completed until Pentium is happy with the final inspections of the rigs
- Last week, the company announced its intention to raise $4 million in a non-renounceable rights issue
- These funds will help pay for the new rigs and bring the machines into work readiness for deployment
- On market close, Vysarn is up 4.08 per cent and is selling shares for 5.1¢ each
Vysarn’s (VYS) subsidiary, Pentium Hydro, has entered into a binding asset agreement to purchase two second-hand dual rotary rigs.
Pentium is a dedicated hydrogeological and dewatering drilling business.
Under the agreement, Pentium will purchase a Foremost DR12 and a Foremost
DR24 for $2.1 million from Southern Rig Hires in New Zealand.
However, the sale will not be completed until Pentium is happy with the final inspections of the rigs. The company will have the responsibility of transporting the rigs to Western Australia.
The purchase is a further step in Vysarn’s strategy to pursue growth opportunities and will ensure the company owns and operates one of the largest dual rotary rig fleets in Australia.
After the deal is complete, Vysarn will own 12 rigs.
“The acquisition of the two rigs enables management to capitalise on the early success of Pentium Hydro and will supplement the existing fleet providing the required scale for the company to achieve its vision of Pentium becoming the preeminent service provider in the hydrogeological drilling space,” the company said.
Non-Renounceable Rights Issue
Last week, the company announced its intention to raise $4 million in a non-renounceable rights issue. These funds will help pay for the new rigs and bring the machines into work readiness, before they’re deployed.
On market close, Vysarn is up 4.08 per cent and is selling shares for 5.1¢ each.
