Tengri Resources Pte. Ltd. entered into an agreement to acquire Cabo Drilling Corp. (TSXV:CBE) in a reverse merger transaction on October 27, 2018. Pursuant to the agreement, Cabo shall purchase Tengri Resources Pte from Phoenix Capital Enterprises Ltd. for $50 million (CAD 65.52 million) paid in cash prorated over five years, commencing on the second anniversary of the date of closing the transaction and issuance of approximately 160 million post consolidation shares in Cabo, which represents 2,110 post consolidation shares for each one issued and outstanding shares of Tengri Resources Pte held by Phoenix. Immediately prior to the closing of the transaction, Cabo will complete a consolidation of all of its outstanding common shares on the basis of one security for each 19 outstanding Cabo Securities. Upon completion of the transaction and the consolidation of the Cabo Securities, Cabo Shareholders will hold 4.9 million post consolidation shares. A $0.5 million (CAD 0.66 million) bridge loan facility will be advanced by Phoenix to Cabo for working capital required during the transaction approval process. In the event Cabo requires additional working capital, Phoenix may provide a line of credit of up to $0.5 million (CAD 0.66 million) from the date of the purchase agreement, at terms to be agreed upon between Phoenix and Cabo. Upon completion, each of the current directors of Cabo, being John A. Versfelt, Peter Freeman and Tom Oliver, shall remain on the board of the resulting issuer and Phoenix will have the right to nominate two directors. The senior management of both Cabo and Tengri Resources Pte is anticipated to combine following completion. John A. Versfelt will continue as President and Chief Executive Officer, Khurlee Ankhbayar will become the Chairman and a Director and Erdenebileg Bulidan will become a Director of the Resulting Issuer. Cabo intends to apply to list its common shares on the Toronto Stock Exchange (the “TSX”), graduating to the TSX from its current listing on the TSX Venture Exchange (TSXV). Cabo also trades on the Frankfurt Exchange. The transaction will be subject to relevant regulatory and stock exchange approvals, including the approval of the TSXV or TSX approval, Phoenix providing current reports, licenses and other documentation required by the TSXV, standard closing conditions, consolidation of Cabo Securities on a 1 new for 19 old shares basis, approval of the board of directors and shareholders of Cabo and Phoenix and the completion of due diligence investigations to the satisfaction of each of Cabo and Phoenix. The transaction cannot close until the required shareholder approval is obtained. As of November 26, 2019, the parties are continuing to work to satisfy the closing conditions for the transaction. Cabo is awaiting the Canadian audited financials and legal opinions for the Singapore and Mongolia companies and the final National Instrument 43-101 technical reports on the nine fluorspar and two quartz mining licenses located in Mongolia.