Pybar said it will benefit from Capital Drilling's expertise and relationships in the region where the company has been providing drilling services to mining operations for 15 years, and in turn, Capital Drilling will benefit from Pybar's knowledge in the provision of underground hard rock mining services.

Pybar chief executive Paul Rouse said: "Our focus remains on Australia; however, with a large number of projects seeking to move underground in Africa there is an opportunity to transfer our capabilities and best practice safety systems to a market which can benefit greatly from our expertise.

"Partnering with an established player such as Capital Drilling will facilitate any entry into the African market."

Executive director of Capital Drilling Brian Rudd added: "The agreement is a positive outcome for Capital and Pybar, and I am confident our complementary strengths will enable us to increase revenue and earnings."

In the event co-marketing efforts are successful in securing contracts in Africa, Pybar and Capital Drilling will execute a formal commercial agreement determining how the projects will be undertaken.