North American Construction Group says it has wrapped up its C$125 million acquisition of Western Australian contractor Iron Mine Contracting, the “expected consideration” rising $10 million since the deal was announced last December.
“IMC provides NACG with an established operating platform in Western Australia, including a diversified, blue-chip customer base and exposure to gold, iron ore and lithium, further aligning the company with structural demand tied to rare earth and critical minerals,” North American Construction Group said.
The combination of IMC and eastern Australia-focused MacKellar Group, acquired in 2023, established a “tier one platform in the overall Australian market” for NACG.
Toronto and New York-listed NACG said it had extended the total capacity of its senior secured credit facility to more than $1 billion and increased the facility’s maturity date to April 7, 2029.
IMC acquisition funding of $41.5 million was drawn from the credit facility and NACG said it assumed $45 million of equipment financing on closing of the deal.
Canada’s National Bank Capital Markets was its financial adviser on the IMC transaction. Fasken Martineau DuMoulin was NACG’s Canadian legal adviser and MinterEllison its Australian legal counsel.
IMC said in December last year had more than A$1 billion of work in hand after winning a 39-month surface mining contract in WA with Covalent Lithium. Other clients included Rio Tinto, Fortescue, Northern Star Resources, Gold Fields and Meeka Metals.
