Post by
sobermind on Dec 20, 2005 4:23pm
Complete News Announcement
United Bolero Announces Filing of NI 43-101 Technical Report and Closing of Private Placement
VANCOUVER, British Columbia, Dec 20, 2005 (BUSINESS WIRE) -- United Bolero Development Corp. (the "Company" or "United Bolero"), (UNB)(FWB:U7N) -
Further to the Company's December 8, 2005 press release, the Company is pleased to announce that it has filed, on SEDAR, a technical report relating to the Company's Bald Butte project. The technical report is now in compliance with the requirements of NI 43-101 and Form 43-101F1. As was previously disclosed in the Company's December 8, 2005 press release, 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 December 8, 2005 press release also stated that the Company suspended its web site 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 (30-60 feet below the surface), of molybdenum mineralization grading in average in excess of 0.10% 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 @ 0.13% molybdenum. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Reference is also made to the Company's December 8, 2005 press release, as filed on SEDAR on December 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 M.Sc., P.Eng. of John P Thompson and Associates and Michael Hastings Sandidge, P.Geo. 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. ( www.aberdeengould.com ), has now closed. Specifically and notwithstanding the Company's December 2, 2005 press release which was issued prematurely and in error, the private placement consisted of the issuance of 3,660,000 units at a price of $0.20 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 $0.25 per share for a period of two (2) years. The proceeds of the private placement will be used for working on the Bald Butte project and general working capital. In connection with the private placement of units, the Company paid a cash commission of $73,200 to Aberdeen Gould Inc. ("AGI") and AGI also received agent's options on 366,000 shares exercisable at $0.20 for two years.
In addition, the Company announces that it has also closed a private placement of "flow-through" units. Specifically, the Company sold, on a non-brokered basis, 850,000 units at a price of $0.20 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 $0.25 per share for a period of one (1) 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 Corporation, $1,000 payable to Bolder Investment Partners, Ltd., $10,500 payable to Aberdeen Gould Inc. and $1,500 payable to Arlen Mifflin and issued agent's options to AGI on 52,500 shares at $0.20 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 November 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 December 8, 2005 press release, effective December 7, 2005, R. Bruce Duncan has succeeded Mr. Blair Naughty as President and a Director of United Bolero. Mr. Naughty remains with the Company in a corporate development role. Since December 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 December 7, 2005, the Company announces that Mr. Duncan was awarded an option on 200,000 shares at a price of $0.165 per share for a period of 5 years under the Company's stock option plan.
United Bolero is listed on the TSX-Venture Exchange under the symbol UNB, as well as the Frankfurt Exchange under U7N.
On behalf of the Board of Directors
R. Bruce Duncan, President
Certain information included in this press release is forward looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events.
The statements in this news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are subject to the safe harbour created by these sections. Actual results may differ materially from the Company's expectations.
The TSX Venture Exchange has not reviewed and does not take respon sibility for the adequacy or accuracy of the contents hereof.
United Bolero Development Corp. (UNB) (FRANKFURT:U7N)
SOURCE: United Bolero Development Corp.
United Bolero Development Corp.
R. Bruce Duncan
President
Toll Free: 1-888-945-4770
info@unitedbolero.com
www.unitedbolero.com
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