Commander Optionee Moving Forward On Public Listing
VANCOUVER, BC - Commander Resources Ltd. (CMD-TSX.V, "Commander") reports that Aston Bay Ventures has reached an agreement to be acquired by Escudo Capital Corporation (EDO.P - TSX.V), a Capital Pool Company. Aston Bay currently holds an option to acquire Commander's Storm copper and Seal zinc properties located on Somerset Island in Nunavut. Completion of the acquisition of Aston Bay by Escudo will represent a "qualifying transaction" in accordance with the policies of the TSX Venture Exchange and, upon completion, Escudo will be listed as a Tier 2 Mining Issuer pursuant to the initial listing requirements of the Exchange. Upon completion of the acquisition, all issued and outstanding shares of Aston Bay will be exchanged for common shares in the capital of Escudo on the basis of 1.92 Payment Shares for every Aston common share held. Commander currently holds 3 million shares of Aston Bay Ventures which will convert to 5.76 million shares of Escudo under the above conversion formula.
Aston Bay Ventures is a private corporation, which has the right to earn up to 70% interest in Commander's Storm and Seal properties by funding $15 million in exploration expenditures, as detailed in Commander's News Release dated November 23, 2011. Aston Bay completed its exploration program on Somerset Island this past summer, which included staking of approximately 75,000 acres, rock sampling of the main copper showings, geological mapping and regional prospecting. Drill core from historic work on both the Storm copper and Seal zinc prospects were examined and selectively re-sampled to provide a data base for extensive intersections of un-sampled drill core.
Completion of the acquisition of Aston Bay by Escudo is subject to a number of conditions, including, but not limited to:
- Exchange acceptance
- Completion of the minimum Private Placement
- Preparation and delivery by Aston Bay of an updated technical report on the property in compliance with National Instrument 43-101 on or before November 15, 2012
As a condition to, and concurrent with, closing of the acquisition, Escudo will conduct a private placement financing. The financing will consist of a minimum of 8 million and a maximum of 20 million common shares at a price of $0.25 per share for minimum aggregate proceeds of $2,000,000 and a maximum of $5,000,000. The proceeds of the financing will be used to conduct work on the project and for general corporate purposes.
COMMANDER trades on the TSX Venture Exchange under the symbol "CMD". For additional information, please visit the Company's website at www.commanderresources.com and for further information regarding Aston Bay Ventures, see www.astonbayventures.com.
On behalf of the Board of Directors,
President & CEO
For further information, please call:
Cathy DiVito, Investor Relations
Toll Free: 1-800-667-7866
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.