Black Diamond Income Fund Purchases Assets in Alaska
CALGARY, ALBERTA--(Marketwire - Aug. 6, 2009) - Black Diamond Income Fund ("Black Diamond" or the "Fund") (TSX:BDI.UN) is pleased to announce that it has acquired workforce housing rental assets from a private Alaska based company for consideration of US$1.15 million.
The acquired assets consist of 16 recently manufactured modular units which provide dormitory and kitchen/dining facilities for use as remote site accommodation. The assets were 100% utilized at closing and Black Diamond has assumed all existing rental contracts.
Black Diamond anticipates annual operating cash flow from these assets in excess of US$500,000 with first rental revenue being invoiced on August 1, 2009. No additional SG&A costs will be incurred by Black Diamond as its existing sales and operations staff will manage these additional assets.
This is an accretive acquisition for Black Diamond and is consistent with the Fund's focused growth strategy and expansion into the US market. This transaction falls within the Fund's 2009 capital expenditure program. Black Diamond has utilized its debt facilities for the cash component of the acquisition.
The Fund is an unincorporated open ended investment trust governed by the laws of the Province of Alberta. The principal undertaking of the Fund, through its indirect wholly-owned subsidiary, Black Diamond Limited Partnership, is to rent modular structures for use as workforce accommodation and temporary workspace, and to provide complementary services including transportation, installation, dismantling, repair and maintenance of modular structures, as well as related services through three operating divisions consisting of Black Diamond Camps, BOXX Modular and Black Diamond Energy Services.
Certain information in this news release contains forward-looking statements including management's assessment of future plans and operations of Black Diamond. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, 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.blackdiamondincomefund.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.