Riyadh – Mubasher: Almasane Alkobra Mining Company (AMAK) has completed all of the regulatory and administrative procedures required to establish its new subsidiary, Advance Drilling Company.
The finalization of the subsidiary’s incorporation marks a significant milestone in AMAK’s strategic expansion into specialized drilling and exploration services, according to a bourse disclosure.
AMAK confirmed that it has successfully obtained the commercial registration, which was issued on 21 May 2026, and finalized the Articles of Association for the new entity. The listed company stated that it retains 100% ownership of the subsidiary, ensuring full strategic and operational alignment with the parent company’s long-term objectives.
Advance Drilling has been established as a one-person Simplified Joint Stock Company, a corporate structure that offers operational flexibility while maintaining the rigorous governance standards required under Saudi Arabian corporate law.
The financial structure of Advance Drilling comprises an authorized capital of 100 million and an issued capital of SAR 40 million.
This capital base is intended to support the company’s primary mandate, which includes providing comprehensive drilling and exploration services, alongside various related support activities essential to the mining industry.
The establishment of Advance Drilling follows a clear timeline of corporate governance and regulatory compliance. The initial approval for the formation of a specialized drilling and exploration unit was granted by AMAK’s board of directors on 14 January 2026, after which the company proceeded with the necessary legal filings and government interactions to secure the subsidiary’s legal standing.
By internalizing exploration and drilling capabilities through this new subsidiary, AMAK positions itself to manage its exploration pipeline more directly. The company noted that there were no delays in the establishment process relative to its previous announcements and that no immediate costs or financial impacts on the parent company’s financial statements resulted from the finalization of the registration.
It is worth noting that AMAK recently submitted an application to the Capital Market Authority (CMA) to increase its capital by SAR 680 million.
