NewsUnited Bolero Development Corp (C-UNB) - News Release
United Bolero debugs previous news; names president
2005-12-08 16:05 ET - News Release
Shares issued 31,322,741
UNB Close 2005-12-07 C$ 0.245
Mr. Mike England reports
UNITED BOLERO CLARIFICATION OF CORPORATE AFFAIRS
As a result of a review by the British Columbia Securities Commission, United Bolero Development Corp. is clarifying its disclosure.
United Bolero is advising investors that the technical report relating to the Bald Butte project that was filed on SEDAR on Nov. 23, 2005, as well as on the company's website, does not comply with the requirements of National Instrument 43-101 and Form 43-101F1. The company is cautioning investors that the report, until completed to correct deficiencies, should not be relied upon. The company is working with the author of the report to address the deficiencies in the report in order to make it NI 43-101 compliant.
The company has temporarily suspended its website to make corrections and modifications. Once the website is reinstated, the report will not be available on the website until it fully complies with the requirements of NI 43-101.
The second tranche of the private placement that was done through Aberdeen Gould was conditional upon a satisfactory third party technical report conforming to NI 43-101. Therefore, until a report in compliance with the requirements of NI 43-101 is prepared and filed, the proceeds of the financing will remain in trust with Aberdeen Gould's lawyers in Toronto. There was a lapse in communication and the company issued a premature press release on Dec. 1, 2005, in error, which should be disregarded (refer to Stockwatch news dated Dec. 2, 2005). The company cannot guarantee the closing of this second tranche of financing. United Bolero is also clarifying certain historic press releases regarding the Bald Butte project. Drill results were presented as a total range in both the Aug. 9, 2005, and the Sept. 8, 2005, news in Stockwatch. The absence of the full results and a map showing the location of the drill holes is contrary to subsection 3.3(2)C and (f) of NI 43-101, and the public is cautioned not to rely upon the information set forth in the Aug. 9, 2005, and Sept. 8, 2005, news releases. The company also stated that the results would be posted on the company's website, which was not done due to an oversight. The complete results were not posted on the website and the full results will be available for viewing on the website once it is reinstated. In the Stockwatch news dated Feb. 22, 2005, the company disclosed historical estimates for the Bald Butte project that were contrary to the requirements of NI 43-101. The news release failed to include the information required under NI 43-101, including a discussion of relevance and reliability, and a comparison between historic and current CIM categories. These historic estimates are not supported by an independent technical report. The company cannot provide a current mineral resource estimate until the company performs and completes its own updated study. Investors are cautioned that they cannot rely upon these historical estimates as being reliable or accurate under the regulatory framework of NI 43-101.
In news dated Nov. 10, 2005, the company disclosed current mineral reserves and included economic projections for the Bald Butte project without a compliant technical report, and in a manner inconsistent with NI 43-101 and other disclosure requirements. The company cannot state that there are current mineral reserves or resources on the property and cannot state that it has demonstrated economic viability. Investors are cautioned that they cannot rely upon these reserves and economic projections. The company retracts any reference made to mineral reserves and economic projections in the release.
In several press releases, the company disclosed its intention to proceed with a 1,000-tonne-per-day mining operation on the Bald Butte property. This decision was made by the board of directors of the company based upon a recommendation from management. Management considered several factors with regard to this recommendation, including management's knowledge of the geology, the location of the molybdenum mineralization and its proximity to an available flotation mill, the present high prices of molybdenum, and management's previous experience in the mining and quarrying industry. The board of directors recognizes there are risks associated with this decision.
The company provided neither a basis for its production decision on the Bald Butte project nor economic projections. The company made this decision in the absence of both a NI 43-101-compliant mineral resources report and a NI 43-101-compliant economic feasibility study. Investors are cautioned that there are additional risks associated with proposed mining operations that are not supported by current mineral reserves based on a feasibility study. Investors are further warned of the possibility that mining operations may not be profitable. The company has continued to work on the Bald Butte project without interruption and the plan to develop the project into a quarry remains intact.
With regards to the company's Cannivan Gulch property, the company has included historical reserve estimates on its website and in previous news releases. Investors are cautioned that they cannot rely upon these reserve estimates. These historic estimates are not supported by a current independent technical report. The company cannot provide a current reserve estimate until it performs and completes its own updated study. The company cannot state that there are current mineral reserves or resources on the property and cannot state that it has demonstrated economic viability. The company retracts these reserve estimates and the references to the reserves will be removed from the company's website.
The company's Blair Naughty has stepped down as the president of the company and a member of its board, effective Dec. 7, 2005, but will remain with the company in a corporate development role. As a replacement for Mr. Naughty, the board of directors has further agreed to appoint R. Bruce Duncan as president and a director, subject to regulatory approval. Mr. Duncan has over 25 years of business experience, including eight years with Gordon Capital. Mr. Duncan's knowledge of public markets, as well as his knowledge of regulatory matters, makes, in the opinion of the board, Mr. Duncan a more than suitable candidate to succeed Mr. Naughty. L.J. Bardswich, PEng, a qualified person for purposes of NI 43-101, prepared the technical details contained in this release. Mr. Bardswich is a director of the company.
In the future, the company will ensure that all press releases are approved by its professional advisors to ensure compliance with all securities regulations.
We seek Safe Harbor.