NEWS!NEWS!NEWS!United Bolero Development Corp (C-UNB) - News Release
United Bolero files Bald Butte report; ends financings
2005-12-20 14:37 ET - News Release
Shares issued 31,322,741
UNB Close 2005-12-19 C$ 0.22
Mr. R. Bruce Duncan reports
UNITED BOLERO ANNOUNCES FILING OF NI 43-101 TECHNICAL REPORT AND CLOSING OF PRIVATE PLACEMENT
United Bolero Development Corp., further to news reported in Stockwatch on Dec. 8, 2005, has filed a technical report on SEDAR relating to its Bald Butte project. The technical report is now in compliance with the requirements of National Instrument 43-101 and Form 43-101F1. As was previously disclosed in a Dec. 8, 2005, news as a result of the review by the British Columbia Securities Commission, the company advised that there were certain deficiencies in respect to its previously filed technical report. In addition, the Dec. 8, 2005, press release also stated that the company suspended its website to make corrections and modifications.
The Bald Butte molybdenum deposit is a quartz-vein, molybdenite stockwork system occupying the southwest flanks of Bald Butte. The property covers 320 acres on 22 patented claims within Lewis and Clark county, Montana. The company conducted a limited percussion drill program consisting of 50 holes in 2005 on the Snowbird and Eureka claims, and identified a very near surface zone (30 feet to 60 feet below the surface) of molybdenum mineralization grading in average in excess of 0.10 per cent molybdenum (Mo). Block model calculations from the 2005 United Bolero 50-hole percussion drill program resulted in estimating an indicated mineral resource of 390,000 tons at 0.13 per cent Mo. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Reference is also made to the company's Dec. 8, 2005, press release (as reported in Stockwatch on the same date) as filed on SEDAR on Dec. 9, 2005, for the company's drilling results on the Bald Butte project.
The foregoing scientific and technical information has been prepared or reviewed by John P. Thompson, MSc, PEng, of John P. Thompson and Associates and Michael Hastings Sandidge, PGeo. Both Mr. Sandidge and Mr. Thompson are qualified persons within the meaning of NI 43-101 and both are independent of the company.
With the filing of the NI 43-101 report, the company's second tranche of its non-brokered private placement, facilitated by Aberdeen Gould Inc. (AGI), has now closed. Specifically and notwithstanding the company's news reported in Stockwatch on Dec. 2, 2005, which was issued prematurely and in error, the private placement consisted of the issuance of 3.66 million units at a price of 20 cents per unit for gross proceeds of $732,000. Each unit consists of one common share and one non-transferable share purchase warrant. Each warrant entitles the holder to purchase one further common share of the company at a price of 25 cents per share for a period of two years. The proceeds of the private placement will be used for working on the Bald Butte project and for general working capital. In connection with the private placement of units, the company paid a cash commission of $73,200 to Aberdeen Gould and AGI also received agent's options on 366,000 shares exercisable at 20 cents per share for two years.
In addition, the company has closed a private placement of flow-through units. Specifically, the company sold, on a non-brokered basis, 850,000 units at a price of 20 cents per unit for gross proceeds of $170,000. Each unit consists of one common share and one-half of one non-transferable share purchase warrant. Each whole warrant entitles the holder to purchase a further common share of the company at a price of 25 cents per share for a period of one year. The proceeds of the private placement will be used for working on the company's Chong property. In connection with such private placement, the company paid the following cash commissions: $1,500 payable to Cannacord Capital Corp., $1,000 payable to Bolder Investment Partners, Ltd., $10,500 payable to Aberdeen Gould and $1,500 payable to Arlen Mifflin. United Bolero also issued agent's options to AGI on 52,500 shares at 20 cents per share for two years and agent's options to other finders on 12,500 shares.
The securities issued pursuant to both private placements are subject to a four-month hold period ending March 29, 2006. The securities and funds issued in connection with both private placements have been held in escrow since Nov. 28, 2005 -- the originally scheduled closing date. However, as a result of the company having to revise its 43-101 technical report, it was decided that all proceeds and securities related to the private placement would continue to be held in escrow until the company complied with its obligation to file a technically compliant 43-101 report.
As was stated in the company's Dec. 8, 2005, press release, R. Bruce Duncan succeeded Blair Naughty as president and a director of United Bolero, effective Dec. 7, 2005. Mr. Naughty remains with the company in a corporate development role. Since Dec. 7, 2005, Mr. Duncan has worked very closely with the company's directors and their employees to oversee the corrections required to the company's 43-101 technical report as well as many of the company's disclosure weaknesses. Effective with the appointment of Mr. Duncan on Dec. 7, 2005, the company awarded Mr. Duncan an option on 200,000 shares at a price of 16.5 cents per share for a period of five years under the company's stock option plan.
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