IMDEX buys Flexidrill for $40m

Global mining-tech company Imdex has exercised its option to acquire New Zealand-based Flexidrill, after gaining the option early last year, for a further payment of $NZ3 million cash.

Imdex had already paid $NZ10 million in both cash and Imdex shares, and will pay a further $NZ27 million in share and royalty-related payments, based on milestones achieved and revenue generated from the acquired business.

The company said the acquisition would strengthen its market position and expand its technology offering to its clients, which now included Flexidrill’s ‘Corevibe’ and ‘Maghammer’ drilling technologies.

Imdex said these would enable clients to drill faster and obtain more accurate subsurface data, as well as receive information in real-time.

Managing director Bernie Ridgeway said the technologies were a strategic fit with Imdex’s drilling optimisation solution, which the company announced in 2017.

“We are confident these new technologies will be a step-change for the minerals drilling industry globally and deliver significant earnings growth for Imdex over many years,” he said.

“Imdex technologies align with growing industry demand for total ore body knowledge, real-time information, lower costs, greater productivity and safety.

“This is becoming even more important as our clients operate in increasingly challenging environments, working in remote areas and assessing resources at greater depths.”

Its newly acquired Corevibe technology uses high frequency, energy pulse-assisted drilling for wireline coring, which Imdex said would advance drilling productivity, based on trials at the NZ test site showing a productivity gain of 33 per cent.

The Maghammer technology uses a new hybrid drilling technique, combining rotary diamond drilling with fluid-driven percussive drilling to increase penetration rates.

Maghammer is currently being developed at Imdex's NZ test site, with trials expected in the third quarter of 2020.

Imdex has also developed Xtracta to complement its recently acquired technologies, which the company said enables drill bits to be inspected or changed without retrieving the rods.