Cabo Drilling Corp.
TSX VENTURE : CBE

Cabo Drilling Corp.

December 02, 2009 09:00 ET

Cabo Closes $872K Private Placement

NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 2, 2009) - Cabo Drilling Corp. (the "Company") (TSX VENTURE:CBE) announces the closing of its partially brokered private placement announced November 2, and November 12, 2009. A very encouraging response to the placement saw the $0.12 per unit offering increase by more than 30% from its original $670,000 target to $872,800 total cash proceeds at the close. The placement was supported by investors represented by Loeb Aron & Company Ltd. and PanAmerica Capital Group Inc., together with other qualified investors, including a number of Company insiders. The units comprise one (1) common share and one half (½) non-transferable share purchase warrant, each full warrant entitles the holder to purchase an additional share for $0.15 on or before November 30, 2011. 

Under terms of the Company's agreements with Loeb Aron & Company Ltd., and PanAmerica Capital Group, the Company will issue a total of 438,033 broker warrants. Each broker unit warrant is exercisable on or before November 30, 2011 and entitles the holder to acquire one broker unit for $0.12 per broker unit, each broker unit is comprised of one share and one ordinary share purchase warrant entitling the holder to acquire one additional share for $0.15 on or before November 30, 2011. 

Common shares issued in connection with the private placement are subject to a four month hold period ending March 31, 2010.

About Cabo Drilling Corp. (TSX VENTURE:CBE)
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 Canadian divisions in Surrey, British Columbia; Montréal, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; and internationally through Cabo Drilling de Mexico S.A. de C.V. of Hermosillo, Mexico; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling Spain S.L. of Sevilla, Spain; 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"

John A. Versfelt
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.
    Sheri Barton
    Corporate Communications
    (403) 217-5830
    or
    Cabo Drilling Corp.
    Mr. John A. Versfelt
    President & CEO
    (604) 984-8894
    ir@cabo.ca
    www.cabo.ca
    or
    Renmark Financial Communications Inc.
    Barbara Komorowski
    (514) 939-3989 or (416) 644-2020
    bkomorowski@renmarkfinancial.com
    or
    Renmark Financial Communications Inc.
    Dan Symons
    (514) 939-3989 or (416) 644-2020
    dsymons@renmarkfinancial.com