Cabo Drilling Corp.
TSX VENTURE : CBE

Cabo Drilling Corp.

June 09, 2005 09:00 ET

Cabo Completes Acquisition of Les Forages de Montreal '1988' Inc. 'Montreal Drilling'

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 9, 2005) - Cabo Mining Enterprises Corp. ("Cabo" or the "Company") (TSX VENTURE:CBE) today announces that it has completed its acquisition of Les Forages de Montreal (1988) Inc. ("Forages de Montreal"). The completion of this acquisition will enhance Cabo's presence in the geoenvironmental and geothermal drilling sectors in the Montreal and greater Quebec markets.

Total consideration for the Forages de Montreal acquisition is $750,000, comprised of $350,000 cash and 500,000 Cabo common shares at a deemed value of $0.80 per share. The shares shall be released in 25% tranches, every four months, over a period of sixteen months.

About Forages de Montreal/Cabo

Forages de Montreal is a geoenvironmental drilling services provider with a fleet of 12 drill rigs and a staff of 20. Forages de Montreal has dedicated a large part of its resources to developing innovative technologies and trained personnel which has resulted in a number of loyal customers for whom they do year-round work.

Geoenvironmental drilling relates to subsurface investigations which may deal with environmental problems such as groundwater contamination, or engineering foundation design and/or soil and rock evaluation for construction purposes. Forages de Montreal, together with Cabo's other geoenvironmental drilling company, Stratacan (Quebec) Inc., provide the specialized equipment and expertise to deal with these various geoenvironmental problems and design requirements.

It is Cabo's intention to merge the operations of its subsidiary Stratacan (Quebec) Inc. with the newly acquired Forages de Montreal. The companies will operate under the new name Forages Cabo Inc. The synergies thus attained will allow for expansion of services presently offered and an increase in the type of services to be provided. It will include a broader geographic reach and greater emphasis on the geothermal market.

Cabo Mining Enterprises Corp. is a drilling services and mineral exploration company headquartered in North Vancouver, British Columbia, Canada. The Company provides drilling services through its subsidiaries Heath & Sherwood Drilling (1986) Inc., of Kirkland Lake, Ontario; Petro Drilling Company Limited of Springdale, Newfoundland; Stratacan Inc. of St. John's, Newfoundland; Forages Cabo Inc. of Montreal, Quebec; and Advanced Drilling Ltd. of Surrey, British Columbia. Cabo's mineral exploration properties are located near Cobalt, Kenora, and Sudbury, Ontario, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD

(signed "John 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 Exchange has not in any way passed upon the merits of this news release.

Contact Information

  • Cabo Mining Enterprises Corp.
    Ms. Sheri Barton
    Investor Relations
    (403) 217-5830
    or
    Cabo Mining Enterprises Corp.
    Mr. John A. Versfelt
    Chairman, President & CEO
    (604) 984-8894
    (604) 983-8056 (FAX)
    cabo@cabo.ca
    www.cabo.ca