Enhancing mining services capabilities with SSH
SSH Group, an industrial services company, has recently entered into a non-binding term sheet to acquire Total Contract Mining (TCM), a privately owned Australian mining services provider. Recognized for its expertise in identifying valuable mineral assets and offering efficient methods for early-stage production, TCM’s services span various underground and surface mining tasks. These include production drilling, charging, bogging, haul and backfill, as well as mine planning, material handling, and crushing and screening.
The acquisition of TCM by SSH is part of the company’s strategic plan to enhance its mining services capabilities and solidify its foothold in the Australian resources sector. This move is expected to broaden SSH’s mining services expertise, expanding its focus from workforce solutions to production capacity. According to SSH’s managing director, Daniel Cowley-Cooper, this potential acquisition aligns with the company’s ambition to expand its influence and operations in the Australian resources industry. Cowley-Cooper emphasizes that this transaction, coupled with recent critical agreements and ongoing sector discussions, positions SSH Group for significant growth in the near future.
However, the completion of this acquisition is contingent upon fulfilling various requirements, including conducting due diligence, establishing employment agreements with key personnel, obtaining board approvals, and finalizing definitive agreements. SSH and TCM aim to conclude due diligence and execute the agreement within a four-week period following the signing of the non-binding term sheet. Throughout the due diligence phase, TCM will exclusively engage with SSH and refrain from entering into discussions or agreements with any other party. SSH will meticulously review TCM’s existing and prospective mining projects to assess potential opportunities and projects in the pipeline.
The specifics of the proposed acquisition, including value and considerations, will be determined during the due diligence process. Upon successful completion of the acquisition, TCM’s founder, Sam Baker, and operations director, Kevin Malaxos, are expected to transition to SSH to facilitate seamless integration. There is also a possibility for Malaxos to join SSH as a non-executive director. Cowley-Cooper emphasizes that this strategic move aims to create value, enhance operational scale, and fortify SSH’s operating model for future growth and sustainability.
In conclusion, SSH’s pursuit of acquiring TCM reflects the company’s commitment to expanding its mining services division and strengthening its presence in the Australian resources sector. This strategic move underscores SSH’s dedication to growth, innovation, and operational excellence, positioning the company for long-term success and leadership in the dynamic mining services industry.