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Black Diamond Group Limited Announces $ 30 Million Capital Expenditure Expansion and Concurrent $ 22.62 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - Feb. 24, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Black Diamond Group Limited (TSX:BDI) ("Black Diamond" or the "Company") is pleased to announce a $30 million increase to its 2010 capital expenditure budget. This increase will bring the total 2010 capital expenditure budget of Black Diamond to approximately $99 million. Substantially all of the previously approved $69 million has been committed to completed acquisitions and organic fleet additions across all three of the Company's operating divisions. The capital expansion is required to meet continuing demand for remote accommodation facilities in both the Alberta oil sands and the Horn River shale gas basin in northern British Columbia. In addition, capital will be expended to fulfill project opportunities in the government and infrastructure sectors in the southern United States. Expenditures are expected to be dispersed in a generally non-speculative manner consistent with prior years. 

In conjunction with this capital expansion Black Diamond has entered into an agreement with a syndicate of underwriters (the "Underwriters"), led by Raymond James Ltd. and including BMO Capital Markets, Acumen Capital Finance Partners Limited, FirstEnergy Capital Corp., Peters & Co. Limited, CI Capital Markets and Clarus Securities Inc., in connection with a "bought deal" common share financing by way of a short form prospectus of an aggregate of 1,200,000 common shares at a price of $18.85 per common share for aggregate gross proceeds of approximately $22.62 million. Black Diamond has also granted the Underwriters an over-allotment option to purchase up to an additional 144,000 common shares at a price of $18.85 per common share, for further gross proceeds of approximately $2.71 million, which would increase the offering to approximately $25.33 million if fully exercised. Net proceeds of the financing will be used to fund the Company's expanded 2010 capital expenditure budget as indicated above, repay bank indebtedness and for general corporate purposes.

The offering is subject to regulatory approval, including approval of the Toronto Stock Exchange and is expected to close on or about March 17, 2010.

ABOUT BLACK DIAMOND

Black Diamond is an Alberta company, the principal undertaking of which, through its wholly-owned subsidiary, Black Diamond Limited Partnership, and through its 50% equity participation in Black Diamond Dene Limited Partnership, is to rent modular structures for use as workforce accommodation and temporary workspace, rent various types of oilfield equipment used in the exploration and production of oil and gas, and to provide complementary services including transportation, installation, dismantling, repair and maintenance of modular structures and oilfield equipment, as well as related services through three operating divisions consisting of Black Diamond Camps, BOXX Modular and Black Diamond Energy Services.

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution. The securities offered are not, and will not be, registered under the securities laws of the United States of America, nor any state thereof and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration.

Advisory Respecting Forward-Looking Statements

Certain information in this news release contains forward-looking statements including the closing date of the offering and the use of proceeds of the offering. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, the receipt of all regulatory approvals and the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could effect Black Diamond's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondlimited.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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