Global provider of mineral and water drilling services Foraco International SA (TSX:FAR) (OTC:FRACF) has secured a major contract with BHP Group Limited (NYSE:BHP) BHP Olympic Dam.
The contract is for exploration and evaluation drilling services near the Olympic Dam mine complex, includes diamond drilling, and is signed for three years with an option for two more years.
The contract involves five rigs, the most of which are remotely operated, and has a total face value of A$80 million, or $60 million excluding options. The face value could exceed $90 million if the two-year options are exercised.
"We have been working hard to market our technical expertise in deep diamond directional drilling services around the world for nearly a decade now and are very excited to start a new relationship with BHP," commented CEO Daniel Simoncini.
Price Action: FAR shares are trading higher by 17.93% at C$2.17 on TSX on the last check Wednesday.
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