Commander Optionee Signs Memorandum of Understanding on Storm Copper Project
VANCOUVER, BC - Commander Resources Ltd. (CMD-TSX.V, "Commander") reports that Aston Bay Holdings Ltd. (BAY-TSX.V) ("Aston Bay"), who have optioned and are earning into Commander's Storm copper and Seal zinc properties, has now signed a binding Memorandum of Understanding ("MOU") with a wholly-owned subsidiary of Antofagasta plc ("Antofagasta") to cooperatively advance the Storm copper and Seal zinc projects in the territory of Nunavut ("Storm"). The MOU gives Antofagasta the opportunity to earn up to a 70% total interest in Storm, as well as a path to an eventual proposed joint venture.
In order to accommodate the involvement of Antofagasta, Commander and Aston Bay have agreed to an amendment ("Amendment") to the Option Agreement that was signed in November, 2011, as previously amended ("Option Agreement"). Commander has agreed to reduce the Area of Interest from 5 km to 2 km; and to allow Aston Bay to buy out Commander's interest in the property for $15 million, or 20% of Aston Bay's market cap, after they have exercised the First Option and earned 50.1% of the property. Aston Bay will have until December 31, 2016 to spend $6 million in exploration on the property and exercise the First Option. In recognition of the continuing difficult capital markets for funding of exploration projects, and the lack of adequate time to prepare for a large program in 2014, Commander accepts that the work program for 2014 will be primarily aimed at setting up and positioning of equipment for a larger program in 2015.
In return for the accommodations that Commander has made in the Amendment, Aston Bay will deliver 500,000 shares of Aston Bay to Commander within 20 business days of the signing of the Amendment. This is an advance from the original agreement, under which the shares would have been due after Aston Bay exercised the First Option. Following receipt of these shares, Commander will hold a total of approximately 3.7 million shares of Aston Bay.
"Aston Bay's agreement with Antofagasta will provide a solid financial and technical base to advance the Storm copper and Seal zinc properties," states Eric Norton, President and CEO of Commander. "We welcome the potential involvement of Antofagasta and believe that the presence of a major, well-funded company validates our belief in the potential for this property, and will accelerate its eventual development."
Commander is a Canadian focused exploration company that has leveraged its success in exploration through partnerships and sale of properties, while retaining equity and royalty interests. Commander has a portfolio of base and precious metal projects across Canada and significant equity positions in Maritime Resources Corp. (MAE-TSX.V) and Aston Bay Holdings (BAY-TSX.V) Commander also retains royalties from properties that have been partnered, optioned or sold.
On behalf of the Board of Directors,
Eric W. Norton
President & CEO
For further information, please call:
Cathy DiVito, Investor Relations
Toll Free: 1-800-667-7866
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.