SensOre Ltd. (SensOre or the Company) is pleased to announce it has reached an agreement to acquire Intrepid Geophysics, a leading provider of geophysics software and services headquartered in Melbourne, Australia with distributors and resellers globally. The deal will be primarily funded through the issue of new fully paid ordinary SensOre shares.


HIGHLIGHTS

  • SensOre expands its AI geophysics capacity through the acquisition of Intrepid Geophysics
  • Acquisition follows the successful completion of a pilot project in the highly prospective Stawell and Ballarat gold corridors of Victoria
  • Transaction increases annual recurring revenue by ~$2 million with an instant global client base
  • Combining technologies will allow SensOre to unlock strong global demand for geophysics, geochemistry and geological machine learning and AI minerals targeting
    • Consideration for acquisition consists of:
    • Upfront consideration: $3 million in SensOre stock at an issue price of $0.70 (4.3 million fully paid SensOre shares or 6.2% of SensOre on a fully diluted basis) and $1 million cash
    • Should SensOre’s share price trade below the issue price for 12 months following the transaction, a proportional adjustment of shares issued will be made (up to a maximum of 4.3 million shares)
    • Deferred consideration: $1 million cash payment, subject to conditions and key personnel retention

Intrepid Geophysics’ advanced automated geophysical software and geoscience expertise complement SensOre’s existing suite of machine learning and AI mineral exploration software products and technology offerings. Intrepid Geophysics’ large client base and strong cashflows were integral to SensOre’s strategic assessment of the transaction.

SensOre Chief Executive Officer, Richard Taylor said: “Acquiring Intrepid Geophysics is a major opportunity for us. Intrepid Geophysics’ deep geoscience and machine learning expertise in geophysics complements SensOre’s geochemistry and economic geology focus for targeting in mineral exploration. Demand for advanced geophysics software is strong and deployable globally. Intrepid Geophysics’ years of product leadership, data collation and collaboration with government geological surveys will benefit SensOre’s data platform development and client service offerings. We are looking forward to integrating Intrepid Geophysics’ exceptional talent with our team of innovators.”

Intrepid Geophysics Managing Director Dr Desmond Fitzgerald said: “The combination of SensOre and Intrepid Geophysics will unlock growth opportunities in a strong market for high level exploration targeting. We look forward to being part of a growing and exciting geoscience group.”

SensOre and Intrepid Geophysics completed a successful pilot project in Victoria in Q2 CY22, confirming the technological synergies and product complementarity between the two companies. The results of the pilot are expected to be deployed with clients in Q3 CY22, focussed on the highly prospective Stawell and Ballarat gold corridors. There is strong interest from prospective clients within these corridors.

Click here for the full ASX Release

This article includes content from SensOre, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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