Vysarn to provide waterwell services to FMG, mobilises rigs to BHP's Olympic Dam
Vysarn Limited's (ASX: VYS) wholly owned subsidiary Pentium Hydro Pty Ltd has received a purchase order for Hydrogeological Borefield and Construction Services from Chichester Metals Pty Ltd (Principal), a subsidiary of Fortescue Metals Group Limited for $800,000.
Under the purchase order, Pentium will provide services to the Principal at its iron ore mine in Cloudbreak in the Pilbara region of Western Australia. Pentium and the Principal are in discussions regarding a formal agreement for Pentium to provide Hydrogeological Borefield and Construction Services to the Principal.
The Principal has issued the purchase order in the interim to enable Pentium to commence mobilisation. Pentium has commenced mobilisation of the drill rig and auxiliary plant which will be used to service the purchase order, and subject to final inspection of the equipment to be carried out in Newman, Western Australia over the next 7-14 days will then complete the mobilisation to the Principal's site at Cloudbreak.
Pentium anticipates commencement of drilling services to the Principal by the end of September.
Additionally, the Company advises that further to its dry hire agreement for two drill rigs with Easternwell WA Pty Ltd (Easternwell) as announced on 16 August 2019, the first rig has arrived on site at BHP's Olympic Dam mine in South Australia and the second rig has been despatched from the Company's yard In Canning Vale.
The Company expects these rigs will be operating and income producing during the month of September.
Pentium Managing Director Mr Sheldon Burt said “To have 3 rigs out of the yard shortly after completion of the Asset Sale Agreement with Ausdrill and the relisting of the Company’s securities is a very positive start for Pentium.
"We are pleased with the quality of the assets purchased and are confident of our ability to become a major provider of waterwell drilling services to the resource, agriculture and infrastructure industries."