huge TBLC news, these guys are gonna do it into big conglomerate.
Timberline Resources Corporation Signs Letter of Intent to Acquire Underground Mining Contractor
COEUR D'ALENE, Idaho, Dec. 5, 2007 (PRIME NEWSWIRE) -- Timberline Resources Corporation (OTCBB:TBLC) announced today that it has signed a non-binding Letter of Intent to acquire Small Mine Development, LLC ("SMD"), one of the largest underground mine contractors in the United States. SMD expects to reach nearly $100 million in revenues this year from the collective efforts of nearly 300 full-time miners working at six mine sites, serving world-class clients including Barrick Gold and Newmont Mining. Ron Guill, the founder, owner, and general manager of SMD, joined the Timberline Board of Directors last month.
Timberline CEO Randy Hardy stated, "We believe that the addition of SMD will position Timberline as a premier North American provider of integrated mining services, further solidifying us in our market niche as an earnings-driven enterprise with excellent 'blue sky' exploration potential. SMD is a proven winner in a difficult industry, demonstrating that diligence, innovation, and a willingness to challenge 'conventional wisdom' can deliver outstanding results. We are very excited to pursue this opportunity with SMD."
Timberline VP of Exploration Paul Dircksen added, "The long-term growth and success of SMD serves as testament to the tenacity and integrity of its sole principal, Ron Guill, who I've known and respected for more than four decades, as well as his exceptional workforce. There are many obvious synergies between SMD and our drilling and exploration divisions, particularly at our advanced-stage projects. We believe that Ron and SMD are a perfect fit for our management team and business model at Timberline."
SMD owner and Timberline Director Ron Guill stated, "I am very pleased to bring SMD together with Timberline and I believe that this relationship will prove mutually beneficial. Timberline management and I share similar business philosophies and we possess highly complimentary skill sets. Our combination will create a uniquely-qualified team pursuing a forward-thinking business strategy."
SMD provides its clients with innovative, flexible, and highly-productive underground mining solutions while maintaining an unwavering commitment to mine safety. SMD pioneered underhand cut-and-fill mining methods in the mid-1980's, a technique that has since become an industry-standard throughout Nevada, allowing safe mining within the difficult ground conditions that often accompany sediment-hosted gold deposits. SMD has risen to a position of industry leadership through a lean, flexible management style, empowering on-site operational teams to execute important decisions with significant autonomy. The SMD workforce is highly-incentivized through an industry-leading compensation package, including a profit-sharing plan. It is anticipated that SMD employee compensation will be further enhanced with stock-based incentives after the closing.
Timberline Executive Chairman John Swallow concluded, "Our corporate objective is to provide investors with significant exposure to both the 'picks and shovels' and 'blue sky' aspects of our industry. We believe that as mainstream investors become increasingly aware that the natural resource sector is not experiencing a typical short-lived cyclical uptrend but rather what we believe is a long-term, demand-driven bull market, the Timberline business model will have far-reaching market appeal. As stated previously, we continue to actively evaluate merger and acquisition opportunities in both mining services and exploration."
Timberline has retained Jefferies & Company, Inc., a global, full service investment banking and institutional securities firm, to advise us on the acquisition of SMD. The acquisition, which is subject to negotiation and execution of binding definitive documents, satisfaction of certain conditions precedent, approval by the Timberline shareholders, and other ordinary and customary closing conditions for a transaction of this type, is anticipated to close in early 2008. The company expects to finance this transaction through a variety of sources, including cash, debt, equity, or a combination thereof.
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