StockMarketWire.com - Mining services company Capital Drilling said it had signed binding agreements with Allied Gold, a private gold mining and development company, to provide a full range of mining services to the latter's Bonikro mine in Cote d'Ivoire.

Capital Drilling also said it had made a strategic investment of $3m in the form of a convertible loan in Allied, which, when converted, would increase its stake in the latter to approximately 3%.

The contract - subject to confirmation of mine plan for the initial five-year contract term - was expected to generate between $25 to $30m in 2020.

Senior Capital Drilling personnel commenced on the site I September 2019, and were working with Allied management to refine the Bonikro mine plan before transitioning to a planned longer-term comprehensive schedule of rates contract, the company said.

The contract further strengthened Capital Drilling's portfolio of large, long term contracts as well as its presence in the fast growth West African market, the company added.




At 8:09am: [LON:CAPD] Capital Drilling Ltd share price was +4p at 65p



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