Cabo Drilling Corp.
TSX VENTURE : CBE

Cabo Drilling Corp.

June 05, 2006 08:30 ET

Cabo Announces TSX Venture Exchange Conditional Acceptance of its Ontario Mineral Exploration Properties Sale

NORTH VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 5, 2006) - Cabo Drilling Corp. (TSX VENTURE:CBE) ("Cabo" or the "Company") announces that it has received conditional acceptance from the TSX Venture Exchange ("Exchange") for the sale of its Ontario mineral exploration properties to International Millennium Mining Corp. ("IMMC") (the "Transaction"). This disposition is a reviewable transaction under the policies of the Exchange and is subject to the Exchanges' final approval.

Final Exchange acceptance of the Company's submission will be conditional upon IMMC successfully obtaining an Exchange listing and pursuant to Exchange Policy 2.5, section 4, confirmation that following the Transaction, the Company will continue to meet all Tier maintenance requirements for its industry segment.

Pursuant to the Transaction, the Company will transfer all of its mineral property interests to IMMC in exchange for 10,000,000 units of IMMC, each unit consisting of one (1) IMMC common share and one-third (1/3) of a warrant, each full warrant entitling the holder to purchase one (1) share in the capital stock of IMMC for thirty-five cents ($0.35) for a period of two (2) years following the date of issue (the "Units"). The Company will subsequently redistribute no less than 75% of the Units to its shareholders on a ratio of one (1) IMMC Unit for each four (4) shares of the Company held on a record date to be determined. The net effect will be that shareholders will continue to hold shares of the Company and receive Units in the capital of IMMC. A four month hold period will apply to the IMMC shares and warrant shares. Upon completion of the Transaction the Company will continue to meet all Tier maintenance requirements for its industry segment.

Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides mining related and specialty drilling services through its subsidiaries Advanced Drilling Ltd. of Surrey, British Columbia; Forages Cabo Inc. of Montreal, Quebec; Heath & Sherwood Drilling Inc., of Kirkland Lake, Ontario; and Petro Drilling Company Limited of Springdale, Newfoundland. The Company's common shares trade on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD

(signed "John A. Versfelt")

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).

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cabo Drilling Corp.
    Ms. Sheri Barton
    Investor Relations
    (403) 217-5830
    Email: ir@cabo.ca
    or
    Cabo Drilling Corp.
    Mr. John A. Versfelt
    Chairman, President & CEO of the Company
    (604) 984-8894
    (604) 983-8056 (FAX)
    Website: www.cabo.ca