Mining services provider MACA Limited has agreed to purchase of all the shares of Alliance Contracting for approximately $5 million, the company announced yesterday.
Alliance is a privately owned mining and civil services provider that was established in 1999. The company has operating depots in Karratha and Port Hedland and a number of contracts in WA including in the Pilbara, Eastern Goldfields and the Mid-West regions.
MACA said the acquisition will be funded through its existing cash resources and is expected to be finalised by the end of this month.
Alliance has Net Tangible Assets of approximately $6 million with hire purchase and debt facilities of $10 million.
MACA CEO Chris Tuckwell said the acquisition of Alliance would provide MACA with new working relationships with Metals X and Silver Lake Resources by providing open cut mining services for the Central Murchison, Santa and Lucky Bay projects.
“For a modest cash outlay MACA’s work in hand position will increase by approximately $50 million to $1.2 billion, with an increased exposure to Gold we are looking to continue the strong working relationship developed by Alliance in the past combined with our own brand of service to deliver quality outcomes for these new clients,” Mr Tuckwell said.
“The strong working capital position and balance sheet of MACA has meant that we were well placed to acquire Alliance and service the contracts with Metals X and Silver Lake Resources profitably. MACA is continuing to review acquisition opportunities and in the current operating environment we are seeing a number of companies with good management and contracts that are capital constrained.”