AUS
NZ
UK
CA
USA
IND
Topdrill, a Kalgoorlie-based drilling contractor, has experienced significant growth since its inception in 2014. The company has expanded from a team of 55 employees to a workforce of 420, largely due to its unique approach of accepting shares in penny stocks, including ASX mining sector stocks, as payment for its services. This strategy has enabled Topdrill to support junior mining companies across Western Australia while maintaining a robust operation.
Led by Tim Topham, Topdrill focuses on partnering with explorers who are early in their mining journey. By accepting shares-for-services agreements, Topdrill helps these explorers manage their costs and keep drilling operations moving efficiently. Topham emphasizes the importance of maintaining drilling momentum for explorers, which has been a key factor in Topdrill’s success.
Topdrill's notable past partnerships include work with Spartan Resources Ltd (ASX:SPR), which involved the Dalgaranga project, and Wildcat Resources Ltd (ASX:WC8) at the Tabba Tabba project. While these collaborations did not involve equity deals, they demonstrated Topdrill's capability in assisting companies to advance their resources.
In addition, Topdrill has supported Morella Mining Ltd (ASX:1MC) in unlocking lithium at the Tabba Tabba East joint venture with Sayona Mining Ltd (ASX:SYA). One of the early adopters of the drilling-for-equity model was De Grey Mining Ltd (ASX:DEG), which engaged Topdrill in 2016 for a 20,000-meter drill program. In this deal, 50% of the drilling costs were to be paid in shares, with a six-month escrow period for the shares.
Recently, drill-for-equity arrangements have gained traction. Topdrill has entered into a new agreement with Torque Metals Ltd (ASX:TOR), a company focused on lithium and gold exploration. This agreement involves paying 50% of the costs for a drilling program at the Paris gold project in ordinary shares, up to a maximum of $1 million. The deal includes a voluntary six-month escrow period for the shares.
This innovative approach helps junior mining companies reduce upfront costs and manage financial risks while fostering strong partnerships with drilling contractors like Topdrill. As the demand for drilling services continues, these equity deals provide a strategic advantage in a fluctuating commodity market.
