Australian firm Everyday Mining Services (EDMS) has entered into a binding agreement to merge with Hughes Drilling.
Under the terms of the agreement, EDMS will acquire 100% of Hughes, which will include Hughes Drilling and Express Hydraulics business.
EDMS will issue 721 million ordinary shares and 360 million performance shares to Hughes Drilling.
Hughes Drilling is a premier coal production drilling specialist with a drilling fleet of 24 production rotary drill rigs, which operates at eight mine sites.
Express Hydraulics is a drill rig maintenance and parts supplier and the Australian distributor of Reichdrill, a premium blast hole drill manufacturer based in the US.
On completion of the merger, the name EDMS will be changed to Hughes Mining Services.
The Hughes Drilling drill fleet is comprised of 24 production rotary drill rigs, the majority of which are Reichdrill rigs that are under three years old.