CABO TO
DRILL 5,000 METRES FOR DIAMONDS NORTH RESOURCES AND ANNOUNCES STOCK OPTION
AMENDMENTS
North Vancouver, BC – Cabo Drilling
Corp. (TSX-V: CBE) (“Cabo” or the “Company”)
announces that its Ontario division has been awarded a drilling contract by
Diamonds North Resources Ltd. The awarded contract consists of 5,000
metres of BTW core drilling at Diamonds North’s Amaruk Project in
Nunavut.
The
drilling equipment will be mobilized in the middle of June with drilling to
commence shortly thereafter. The Company will be utilizing a JKS Super 300
fly drill. In response to the recently released high Diamond counts from
the Char and Qavvik kimberlites, Diamonds North plans to collect larger
bulk samples, approximately 6 to 10 tonnes, from each of these kimberlites.
The objective of the bulk samples is to obtain a representative Diamond
size distribution for the Char and Qavvik kimberlites to assess their
economic potential.
About Diamonds North Resources Ltd. (TSX-V:
DDN)
Diamonds North is the dominant explorer in the Pelly Bay region and is
focused on discovering Canada's next Diamond mine. Diamonds North is
well-financed with over $14 million in cash and marketable securities. The
Company is rapidly evolving and committed to building long-term value
through ongoing Diamond discoveries.
Stock Options Cabo also announces
stock option changes. At March 31, 2007, the number of stock options
granted totaled 2,428,000 shares. However, as a result of stock options
expiring or terminating, this number is reduced to 1,906,500 shares to
date, with a further 387,500 expiring mid-June, 2007. Upon review of all
stock options for approximately 300 employees, the Company’s
directors have approved, subject to TSX Venture Exchange acceptance:
1. 325,000 stock options granted on or prior to January
2007 shall remain unchanged and exercisable at $0.50/$0.75/$1.00 per share,
with 1/3 of such options being exercisable at each such price per share;
2. 225,000 stock options previously granted
to independent directors at $0.80 per share and exercisable to October,
2011 shall be re-priced to $0.65/$0.75/$0.85 per share, with 1/3 of such
options being exercisable at each such price per share;
3. 150,000 new stock options shall be granted to new
independent directors at exercise prices of $0.65/$0.75/$0.85 per share,
with 1/3 of such options being exercisable at each such price per share.
These options shall be exercisable for a period of four years;
4. 387,500 stock options, exercisable at $0.75 per
share and previously granted to employees in 2002 expiring mid-June, 2007,
shall be replaced in full at $0.65/$0.75/$0.85 per share, with 1/3 of such
options being exercisable at each such price per share. These options
shall be exercisable for a period of three years;
5. 730,000 stock options granted to employees at $0.80 per share and
exercisable to October, 2007 shall be re-priced to $0.65/$0.75/$0.85 per
share, with 1/3 of such options being exercisable at each such price per
share. These options shall be exercisable to October, 2009;
6. 259,000 stock options granted to employees at $0.80
per share and exercisable to October, 2007 shall be re-priced to $0.75 per
share and shall be exercisable to October, 2009;
7. 605,000 new stock options shall be granted to new and existing
employees at an exercise price of $0.65/$0.75/$0.85 per share, with 1/3 of
such options being exercisable at each such price per share. The options
shall be exercisable for a period of three years.
The
total stock options granted after the changes set out above, upon Exchange
acceptance of these changes, shall be 2,679,500 for a net change from the
stock options reported at March 31, 2007 of 251,500.
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
related and specialty drilling services through its Canadian divisions in
Surrey, British Columbia; Montréal, Quebec; Kirkland Lake, Ontario;
and Springdale, Newfoundland; as well as Cabo Drilling de Mexico S.A. de
C.V. of Hermosillo, Sonora, Mexico; Cabo Drilling (Panama) Corp. of Panama,
Republic of Panama; and Cabo Drilling Spain S.L. of Sevilla, Spain. The
Company’s common shares trade on the TSX Venture Exchange under the
symbol: CBE.
ON
BEHALF OF THE BOARD
“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)
or by contacting Ms. Sheri
Barton, Investor Relations
at 403-217-5830 or Mr. John A.
Versfelt, Chairman, President & CEO
of the Company at
604-984-8894.
* * * *
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.
------------------------------
CONTACT:
John
A. Versfelt, Chairman,
President
and CEO web
site: www.cabo.ca
Telephone: (604)
984-8894 Facsimile: (604) 983-8056 e-mail: ir@cabo.ca
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