Cabo Drilling Corp. (the “Company”) (TSX-V: CBE) ("Cabo Drilling" or the "Company") announced today that it has closed a private placement of $1,994,666.67 (the "Principal Amount") of secured subordinate debentures of the Company (the "Debentures"). The Debentures were sold at a price of approximately $882 per $1,000 of the Principal Amount of each Debenture raising aggregate proceeds of $1,760,000. The Principal Amount of the Debentures includes 13.33% interest on such proceeds. The Debentures shall mature on the date that is one year from the date of issue (the “Maturity Date”). The Company has the ability to redeem the Debentures, in whole or in part, at a price equal to the Principal Amount at any time. In addition, an aggregate of 1,513,978 common shares were issued to the subscribers, on a pro rata basis, as bonus shares.
A finder's fee of $119,680 in cash and 257,376 in common shares will be paid to qualified finders including Ascendant Securities Inc. In addition, finders will receive an aggregate of 1,029,505 share purchase warrants (the "Finder's Warrants"), with each such Finder’s Warrant entitling its holder to purchase one common share at a price of C$0.16 for a period of one year from the closing date of this transaction.
The Company will use the net proceeds of the Offering for general working capital purposes. The securities issued under this private placement are subject to a hold period under applicable Canadian securities legislation of four months and a day expiring on June 15, 2012. Completion of the financing is subject to final approval from the TSX Venture Exchange.
About Cabo Drilling Corp. (TSX-V:CBE)
Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides mining specialty drilling services through its Canadian divisions in Surrey, British Columbia; Montréal, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling (Nevada) Inc. of the United States; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling Panama-Pacifico Corp. of Panama, Republic of Panama doing business as Cabo Drilling Colombia Corp.; Balkan States Drilling SH.P.K. of Tirana, Albania; and Cabo Drilling (International) Inc. The Company’s common shares trade on the Frankfurt Exchange under the symbol: DHL and on the TSX Venture Exchange under the symbol: CBE.
ON BEHALF OF THE BOARD
John A. Versfelt
Chairman, President and CEO
Further information about the Company can be found on the Cabo website (http://www.cabo.ca) and SEDAR (www.sedar.com) or by contacting Sheri Barton, Corporate Communications at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894.
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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.