NORTH VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2012) - Cabo Drilling Corp. (TSX VENTURE:CBE) ("Cabo" or the "Company") announces that the Company has entered into a new $3 million equipment loan facility with GE Capital, Canada. The loan proceeds will be used to pay out approximately $1 million remaining under lending facilities with HSBC Canada, and to provide approximately $2 million of working capital. At this time, the Company is working through the process of establishing new relationships with banks to replace HSBC Canada.
"We are pleased to be able to secure a loan facility with GE Capital and look forward to expanding our relationship with them as we continue to grow our business. The new loan facility with GE Capital provides Cabo with long-term security, with enhanced financial flexibility, at more competitive terms than our previous arrangement with HSBC," stated John Versfelt, Cabo's CEO and President. "Overall, we are pleased to have a new financial partner who is interested in working with Cabo longer term to execute our business plan."
About GE Capital, Canada
With more than 20 offices throughout Canada, GE Capital (gecapital.ca) offers a wide variety of financial products and services to address commercial financing and fleet management needs in all phases of a business' lifecycle. From equipment finance to working capital and growth financing to large asset-based and restructuring loans, GE Capital applies wealth of industry expertise and develops custom solutions for its clients. Some of the industry sectors that GE Capital specializes in include transportation, construction, healthcare, agriculture, forestry, manufacturing, oil & gas, wholesale and retail, restaurant and hotel franchises.
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit gecapital.com or follow company news via Twitter (@GECapital). GE works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at ge.com.
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 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 (Nevada) Inc. of the United States; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling Panama-Pacifico Corp. of Panama, Republic of Panama doing business as Cabo Drilling Colombia Corp.; 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, 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 TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.