Black Diamond Signs Long-Term Contract for Sunday Creek Lodge
CALGARY, ALBERTA--(Marketwire - June 28, 2012) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI), a leading provider of remote workforce accommodations, modular space solutions and oilfield services products in North America, is pleased to announce it has signed a long-term occupancy contract for its Sunday Creek Lodge facility located in the oilsands region of northern Alberta.
Approximately 75 percent of the remote facility has been contracted until January 2016 to a large resource company to house workers near Conklin, Alberta. Black Diamond anticipates revenue for the entire facility to reach $120-$150 million over that time period.
In conjunction with the contract award, significant upgrades will be made to the facility. A portion of the existing lodge will be converted to multi-storey dormitories and enhancements are being made to the kitchen, dining and recreation facilities. The upgrades will bring the total room count of the lodge to 1182.
Renovation construction will commence at the beginning of Q4 2012. In the interim, the facility is expected to operate at 75 percent capacity until the upgrades are completed at the end of Q4 2012. The lodge is expected to return to full capacity by January 2013. The upgrades for this project fall within the Company's 2012 capital expenditure budget.
About Black Diamond
Founded in 2003, Black Diamond Group Limited is one of North America's fastest growing remote lodging, modular building and energy services companies. With its corporate head office located in Calgary, Alberta, Black Diamond Group provides world-class services to a full spectrum of industries including oil and gas, mining, power, construction, engineering, military, government and education.
Through its wholly-owned subsidiaries, Black Diamond Limited Partnership, BOXX Modular Inc. and through its 50% equity participation in the Black Diamond Dene Limited Partnership, Black Diamond West Moberly Limited Partnership and Black Diamond Nehiyawak Limited Partnership, Black Diamond operates four complementary divisions in thirteen strategic locations across Canada and the USA.
Black Diamond Camps rents and sells remote workforce housing and provides associated services; Black Diamond Logistics provides turnkey lodging services, remote facility management and supply chain solutions; BOXX Modular specializes in renting and selling a broad range of modular work space solutions and Black Diamond Energy Services rents and sells a complement of oilfield equipment and services.
Certain information in this news release contains forward-looking statements including management's assessment of the amount of revenue to be derived from the contract and the term over which such revenue is expected to be generated, and the anticipated timing of the commencement of construction, occupancy and full completion of the project. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, dependence on agreements and contracts, 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 affect 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.
President and Chief Executive Officer
(403) 264-9281 (FAX)
Black Diamond Group Inc.
Executive Vice President and Chief Financial Officer
(403) 264-9281 (FAX)