Black Diamond Income Fund Announces the Purchase of an Open Camp
September 14, 2009
CALGARY, ALBERTA--(Marketwire - Sept. 14, 2009) -
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Black Diamond Income Fund ("Black Diamond" or the "Fund") (TSX:BDI.UN) is pleased to announce that it has reached an agreement for the purchase of an operating open camp. The camp is located in the Conklin area south of Fort McMurray, Alberta and currently has over 500 beds on site. The expected close date for this transaction is September 15, 2009 with a cost of $6.75 million. Upon close, the occupancy at the camp is estimated to be 90%. Annual revenues and EBITDA anticipated from this open camp are $16 million and $4 million respectively. There is significant oil sand development activity ongoing in the area where the camp is located with a number of large energy producers. As well, there are additional projects being sanctioned in the area providing an opportunity for Black Diamond to add equipment to the camp expanding its capacity and upgrading the quality of facilities currently offered.
The Fund is an unincorporated open ended investment trust governed by the laws of the Province of Alberta. The principal undertaking of the Fund, through its indirect wholly-owned subsidiary, Black Diamond Limited Partnership, is to rent modular structures for use as workforce accommodation and temporary workspace, and to provide complementary services including transportation, installation, dismantling, repair and maintenance of modular structures, as well as related services through three operating divisions consisting of Black Diamond Camps, BOXX Modular and Black Diamond Energy Services.
Certain information in this news release contains forward-looking statements including management's assessment of future plans and operations of Black Diamond. 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, 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 effect 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.blackdiamondincomefund.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.