Black Diamond Group Limited Announces Conditional Award of Large Turnkey Camp Contract
CALGARY, Alberta, July 16, 2018 (GLOBE NEWSWIRE) -- Black Diamond Group Limited (“Black Diamond Group” or the “Company”) (TSX:BDI), a leading provider of modular space solutions and workforce accommodations, is pleased to announce the Company’s Workforce Solutions business unit has been conditionally awarded a $42.5 million camp contract. The camp will provide remote workforce accommodations for the construction of the proposed Coastal GasLink Pipeline Project (the “Project”). The contract award is conditional upon a positive final investment decision by the Joint Venture Participants of LNG Canada.
In connection with its indigenous partnership with the West Moberly First Nations, the Company has conditionally secured a 908-bed turnkey camp contract for 27 months to service the construction of the Project. Pipeline construction is expected to begin in early 2019 and first revenue is anticipated concurrently. The camp will be constructed utilizing the Company’s existing accommodation assets and any associated new capital investment required is expected to be nominal.
“We are excited that Black Diamond has been selected to support this major Canadian LNG project and we believe our large fleet of high quality accommodation assets leaves us well positioned for additional associated opportunities,” said Trevor Haynes, President and CEO of Black Diamond Group. “We believe this contract award will contribute significant value to our indigenous partners, our shareholders and to our customer.”
About Black Diamond Group
Black Diamond Group rents and sells space rental solutions and modular workforce accommodations to business customers in Canada, the United States and Australia. The Company also provides specialized field rentals to the oil and gas industries of Canada and the United States. In addition, Black Diamond Group provides turnkey lodging services, as well as a host of related services that include transportation, installation, dismantling, repairs, maintenance and ancillary field equipment rentals. From twenty-two locations, the Company serves multiple sectors including oil and gas, mining, power, construction, engineering, military, government and education.
Black Diamond Group has two core business units: Workforce Solutions and Modular Space Solutions. Learn more at www.blackdiamondgroup.com.
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Certain information in this news release contains forward-looking statements including the timing of pipeline construction and associated first revenue, potential additional capital expenditures that may be required, the potential contribution from the contract, and future business prospects and opportunities. With respect to the forward-looking statements contained in this news release, Black Diamond has made assumptions, regarding among other things: the level of demand for workforce accommodation in the regions mentioned, and that counterparties to contracts will perform the contracts as written. Although Black Diamond believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. 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, environmental risks, industry competition, availability of qualified personnel and Management, stock market volatility and 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 Black Diamond's most recent annual information form and other 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.blackdiamondgroup.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.