SSH to bolster mining services capabilities
Industrial services company SSH Group has signed a non-binding term sheet to acquire Total Contract Mining (TCM), an Australian privately owned mining services provider.
TCM specialises in identifying high-potential mineral assets and presenting their owners with streamlined approaches to early-stage production.
The company’s services cover underground mining capabilities such as production drilling and charging, bogging, haul and backfill, and surface mining applications like mine planning, material handling and crushing and screening.
SSH said acquiring TCM aligns with its strategy to rapidly grow its mining services capabilities and strengthen its position in the Australian resources sector.
The transaction would also expand SSH’s mining services proficiencies by expanding its vertical from workforce to production capability.
“The signing of this non-binding term sheet for the potential acquisition of Total Contract Mining represents another significant step in our strategy to grow our mining services division,” SSH managing director Daniel Cowley-Cooper said.
“This opportunity, combined with our recent progress in securing key agreements and advancing discussions in the sector, positions SSH Group for potential substantial growth in the Australian resources industry.”
The potential acquisition is subject to a range of conditions, including due diligence, employment agreements with key personnel, board approvals, and the negotiation and execution of definitive agreements.
Both SSH and TCM expect due diligence to be finalised and the agreement to be executed within four weeks following the signage of the non-binding term sheet.
During the due diligence period, TCM will exclusively deal with SSH and won’t engage in discussions or agreements with any other party, and SSH will review and analyse TCM’s current workbook of mining projects and pipeline of opportunities it has shortlisted.
The value and considerations for the proposed acquisition will be agreed upon during the due diligence process.
If the acquisition is successful, TCM founder and managing director Sam Baker and operations director Kevin Malaxos will join SSH to ensure a smooth integration, with Malaxos having the opportunity to join SSH as a non-executive director.
“This is a move designed to create value, deliver scale, and build resilience in SSH’s operating model,” Cowley-Cooper said.