Trading Symbol: "EGD: TSX.V"
VANCOUVER, May 3, 2019 /CNW/ - Energold Drilling Corp.
(EGD: TSX.V) ("Energold" or "The Company" or "Energold Group") is
pleased to announce it has reached a milestone agreement for the
$20 million convertible debenture
first negotiated in February 2017
with a syndicate of existing debtholders, insiders, and investors
led by Extract Advisors LLC.
Energold is pleased to announce that we have entered into a
forbearance agreement with our secured creditors that will provide
us with the time and opportunity to implement and execute on our
ongoing process of financial and operational improvements, as we
position Energold for long term stability and success in the
current challenging market.
President and CEO of Energold, Frederick
Davidson comments, "This forbearance agreement is a
significant vote of confidence and commitment from investors and
creditors that business is improving for Energold. A deferral now
helps us in the short term with working capital and should reward
stakeholders in the long term.
2018 performances were indicative of significant growth of our
diversified drilling sectors which now represent over 50% of
overall revenue. Coupled with selective investment of capital into
the mining space, increased mergers and acquisitions on large
projects, all point to the bottom of a cycle and continued
improvement in sentiment for the space.
We anticipate similar continued improved performances in all our
divisions but need working capital to fund this growth. The
positive earnings and diversified growth should help re-rate the
Energold narrative for better valuations and benefit all long-term
stakeholders."
Concurrent to this renegotiated convertible debenture, Energold
endeavors to continue to divest non-key assets to help transform
the business into a more agile and profitable global drilling
service provider.
ABOUT ENERGOLD DRILLING
Energold Drilling Corp. is a leading global specialty drilling
company that services the mining, energy, infrastructure,
geothermal, water and manufacturing sectors in 24 countries.
Specializing in a socially and environmentally sensitive approach
to drilling, Energold provides a comprehensive range of drilling
services from early stage exploration to onsite operations as well
as manufacturing.
On behalf of the Directors of Energold Drilling Corp.,
"Frederick W. Davidson"
President, CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking
Statements:
Some statements in this news release contain forward-looking
information. These statements include, but are not limited to,
statements with respect to proposed activities, work programs and
future expenditures. These statements address future events and
conditions and, as such, involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the statements. Such factors include, among others, the effects of
general economic conditions, a reduction in the demand for the
Company's drilling services, the price of commodities, changing
foreign exchange rates, actions by government authorities, the
failure to find economically viable acquisition targets, title
matters, environmental matters, reliance on key personnel, the
ability for operational and other reasons to complete proposed
activities and work programs, the need for additional financing and
the timing and amount of expenditures. Energold Drilling Corp. does
not assume the obligation to update any forward-looking
statement.
SOURCE Energold Drilling Group
