Information on the Target

Osprey Capital Partners Inc. is proud to announce its facilitation of Energold Drilling Corp.'s acquisition of Cros-Man Direct Underground Ltd., a Manitoba-based company established in 2005. Cros-Man specializes in horizontal directional drilling, serving various markets including telecommunications, water, sewage, hydro, and oil and gas in central Canada. The company’s primary operations involve trenchless techniques for the underground installation of cable and piping systems, utilizing highly specialized drilling equipment.

Over the past eleven years, Cros-Man has consistently increased its revenue from engineering and telecommunications drilling services. Additionally, it maintains a significant presence in the oil and gas pipeline sector in Central Canada, thereby positioning itself as a key player in the industry.

Industry Overview in Canada

The Canadian infrastructure drilling market has exhibited robust growth driven by the increasing demand for modern utility services and urban development projects. As cities expand and the need for reliable underground infrastructure rises, specialty drilling services, such as those offered by Cros-Man, are becoming increasingly essential. The use of trenchless technologies is particularly advantageous as it minimizes surface disruption and reduces environmental impact.

Additionally, the telecommunications sector is experiencing substantial growth, fueled by ongoing investments in fiber-optic networks and 5G installations. With the government prioritizing digital infrastructure to support economic growth, companies like Cros-Man are well-positioned to benefit from this trend.

Moreover, the oil and gas sector continues to evolve, with companies seeking more efficient methods of pipeline installation and maintenance in response to regulatory pressures and environmental concerns. Cros-Man’s dual focus on telecommunications and oil and gas enhances its market competitiveness.

Overall, the landscape for infrastructure drilling in Canada is marked by innovation and increasing complexity, providing significant opportunities for companies that can adapt to changing market demands.

The Rationale Behind the Deal

The acquisition of Cros-Man aligns perfectly with Energold Drilling Corp.’s strategic goals to leverage the expanding market for infrastructure drilling throughout Canada and the United States. By incorporating Cros-Man’s established presence and specialized capabilities, Energold aims to enhance its operational scope and profitability.

This deal is expected to yield more predictable revenue streams for Energold by diversifying its service offerings and capitalizing on the synergies that come from crew-sharing arrangements within the Energold Group. This creates a solid foundation for growth and scalability.

Information About the Investor

Energold Drilling Corp. is a premier global company specializing in drilling services across the mining, energy, water, infrastructure, and manufacturing sectors in approximately 25 countries worldwide. Known for its commitment to socially and environmentally responsible practices, Energold provides a comprehensive suite of drilling services that cater to all stages of exploration through to mine site operations across various commodities.

The company also owns a drill rig manufacturing operation, Dando Drilling International, located in the United Kingdom, along with significant holdings in IMPACT Silver Corp., a major silver producer in Mexico. Energold's established track record and extensive operational experience make it a formidable player in the specialty drilling sector.

View of Dealert

The acquisition of Cros-Man Direct Underground Ltd. is anticipated to be a strategic and financially beneficial investment for Energold Drilling Corp. By expanding into the infrastructure drilling market, Energold will diversify its revenue streams and reduce its dependence on any single industry. This diversification is crucial in navigating the cyclical nature of the drilling business.

Cros-Man's strong market position in engineering and telecommunications drilling sectors, combined with its ongoing involvement in oil and gas pipelines, provides Energold with complementary services that can enhance operational efficiencies and profitability. Furthermore, the anticipated crew-sharing arrangements within the Energold Group may lead to significant cost savings.

Given the favorable growth trends in the Canadian infrastructure market, this acquisition enables Energold to capitalize on emerging opportunities and strengthen its overall market presence. Overall, the strategic fit between Energold and Cros-Man presents a promising outlook for long-term success.

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