North Vancouver-based driller Cabo Drilling (CBE-V) is planning to use a $870,000 private placement to build its equipment arsenal at a time when discounts are plentiful.
The company increased the financing from an original $670,000, due to a high level of interest among shareholders.
“(The financing) is timely, as conditions are perfect for the acquisition of new equipment, with drills currently available on the market at discount prices,” said John Versfelt, president and CEO of Cabo.
The private placement was based on an “unsolicited offer” by two major shareholders, Loeb Aron & Co. and PanAmerica Capital Group. Insiders of the company and other investors will also participate. The bought-deal financing will see 5,583,333 units sold at 12¢ apiece, for total cash proceeds of $670,000. The units comprise one common share and half a non-transferable share-purchase warrant, with each full warrant exercisable at 15¢ for a period of two years.
Cabo Drilling, which has affiliates worldwide, focuses on mining and specialty drilling.
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