Everest Ventures Corp.

April 28, 2010 14:19 ET

Everest Announces Update on Operations of Estrella Overseas Limited and New Board Members

CALGARY, ALBERTA--(Marketwire - April 28, 2010) -


Further to a news release dated March 22, 2010 by Everest Ventures Corp. (TSX VENTURE:EVE.P) ("Everest" or the "Corporation") announcing a proposed Qualifying Transaction (as such term is defined in the policies of the TSX Venture Exchange) with Estrella Overseas Limited ("Estrella"), Everest is pleased to provide the following updates.

Estrella Operational Update
Pursuant to its previously announced capital expenditure program, Estrella has completed the acquisition of two drilling rigs in South America. After the March 2010 equity capital raise whereby Estrella became debt free and received US$40 million of cash to grow its business (as disclosed in Everest's press release dated March 22, 2010), Estrella acquired: i) a 1,200 HP AC drilling rig, which is working on a Geothermal project at high altitude in Northern Chile, ii) a 350 HP light drilling, heavy workover rig for operations in the jungles of Peru, and iii) directional drilling equipment for Colombia and Peru. These acquisitions bring Estella's rig fleet to six, all of which are operating under contract. The two recently purchased rigs were purchased in their respective countries of operations, eliminating lease payments and increasing EBITDA.

Estrella expects to announce the purchase and deployment of additional rigs into Colombia and Peru on term contracts as part of its capital expenditure plan in the coming weeks.

Warren Levy, Chairman and CEO of Estrella and Proposed Chairman, CEO and Director of the Resulting Issuer (as such term is defined in the policies of the TSX Venture Exchange), stated:
"We are excited about the growth opportunities presenting themselves in Latin America. Building off a 2009 where we managed to significantly increase our operational footprint despite challenging market conditions, the purchase of these two rigs is a key step in our aggressive regional growth plan. Our decision last year to expand our business up into Peru and Colombia has been well received by our customers, and we expect to continue to deploy new rigs and equipment into these markets throughout the remainder of 2010."

Additions to the Board of Directors of Estrella
Estrella is also pleased to announce the appointment of John Zaozirny and Remo Mancini to the board of directors of Estrella; both are Canadian residents and together bring the total number of Estrella board members to seven (7). It is also expected that Mr. Zaozirny and Mr. Mancini will become board members of the Resulting Issuer.

John Zaozirny has served as Vice-Chairman of Canaccord Financial Corporation since 1996. He is a Director and a strategic advisor to a number of public and private corporations, and a Governor of the Business Council of British Columbia. He was Alberta's Minister of Energy and Natural Resources from 1982 to 1986, and he was first elected as a Member of the Alberta Legislature in 1979. He also served as Chairman of the Cabinet Committee on Economic Development and Chairman of the Private Bills Committee. Mr. Zaozirny is perhaps best known for his role as Alberta's Energy Minister in negotiating the end of the National Energy Program.

John Zaozirny earned a Bachelor of Commerce degree at the University of Calgary in 1969 and a Bachelor of Laws degree at the University of British Columbia in 1972. While at U.B.C., he received the Thorsteisson Mitchell Award in Tax Law. He went on to earn his Master of Laws degree at the University of London (London School of Economics and Political Science) in 1973. He was admitted to The Law Society of Alberta in 1974 and The Law Society of British Columbia in 1986. Mr. Zaozirny was designated a Queen's Counsel in Alberta in 1984. He was named Resource Man of the Year by the Alberta Chamber of Resources in 1985 and received the Distinguished Alumni Award from the University of Calgary in 1987.

He is a Director of Bankers Petroleum Ltd., Canaccord Financial Corporation, Canadian Oil Sands Limited, Coastal Energy Company, Computer Modelling Group Ltd., Pacific Rubiales Energy Corporation, Pengrowth Corporation, Petro America Oil Corporation, Provident Energy Ltd. and Terra Vest Income Fund. He is also a member of the Independent Review Committee of the Middlefield Group of Funds.

Remo Mancini is an accomplished professional with more than 30 years experience working at senior levels of business and government. Mancini has completed the Directors Education Program offered by the Institute of Corporate Directors and the Rotman School of Management, University of Toronto and has earned the internationally recognized designation ICD.D. He is a Corporate Director and serves on the Board of Directors of Niocan Inc. and Cadman Resources. He also recently completed two terms as Chairman of the Board of the Windsor Essex Development Commission and for 11 months was the Interim Executive Officer at the Commission.

At the age of 21 Mr. Mancini was elected to the local municipal council. He holds the notable distinction of being the youngest person (23 years) ever elected to the Essex County Council. The following year, at only 24 years of age, Mancini became one of the youngest members ever elected to the Ontario Provincial Parliament. Mancini had a long and distinguished political career serving 21 years in elected office. Mancini's 18 years in the Ontario Legislature included serving as Chairperson of the Public Accounts Committee, Official Opposition Party House Leader, Parliamentary Secretary to the Premier, Minister for Disabled Persons and Minister of Revenue.

After leaving public service Mr. Mancini entered the private sector and soon thereafter joined the Canadian Transit Company where he served in various functions and eventually was named Executive Vice President for both the Canadian Transit Company and the Detroit International Bridge Company, the private companies that own, manage and operate the Ambassador Bridge, the world's busiest commercial border crossing.

Mr. Mancini has extensive experience in, issues management, working with community groups, project management and managing teams of experts including consultants, lawyers, engineers and other professionals. Mancini has worked in Canada, the United States and Mexico with various levels of government on behalf of private business and a number of industry business sectors.

Everest and Estrella are working towards completing the proposed Qualifying Transaction and expect to enter into a definitive agreement with respect thereto shortly.

This press release should not be considered a comprehensive summary of the proposed Qualifying Transaction. Additional information required by the TSX Venture Exchange (the "Exchange") will be disseminated as such information becomes available.

Completion of the proposed Qualifying Transaction is subject to a number of conditions, including but not limited to Exchange acceptance and if applicable pursuant to Exchange, majority of the minority shareholder approval. Where applicable, this transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the proposed Qualifying Transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

All information contained in this news release with respect to Estrella and the proposed Board appointments was supplied by Estrella for inclusion herein, and Everest and its directors and officers have relied on Estrella for any such information and have not independently verified such information.

Statements in this press release may contain forward-looking information, including, but not limited to, the purchase and deployment of additional drilling rigs into Colombia and Peru by Estrella, announcement of further updates on Estrella's capital expenditure program, the proposed board members of the Resulting Issuer, and the execution of a definitive agreement relating to the proposed Qualifying Transaction. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Everest and Estrella. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Everest does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Qualifying Transaction and has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Everest Ventures Corp.
    Darcy Krogh
    President and Chief Executive Officer
    (604) 669-4180
    (403) 237-5816 (FAX)