Commander Signs $5.5 Million Option Agreement on South Voisey's Bay Nickel Property
VANCOUVER, BC – Commander Resources Ltd. (CMD-TSX.V, "Commander") announces that it has signed a Memorandum of Understanding granting Fjordland Exploration Inc. (FEX-TSX.V, "Fjordland") an Option to earn into Commander's South Voisey's Bay nickel property. The Option Agreement ("Agreement") provides Fjordland the right to earn up to a 70% interest in Commander's wholly owned South Voisey's Bay Property, located in central Labrador, by funding $5.5 million in exploration expenditures, and issuing a total of 2,250,000 shares to Commander.
The South Voisey's Bay property is located in the Pants Lake intrusive complex, approximately 80 km south of the operating Voisey's Bay nickel mine. Extensive work in the area was conducted in the late 1990's. Since 2012 Commander has acquired the properties of former JV partners, negotiated the removal of back in rights of a major mining company, and staked additional land in order to consolidate the more promising properties into one large contiguous parcel of approximately 17,800 hectares with clean title.
Under the terms of the Agreement, Fjordland can earn a 70% interest in the property by incurring the following exploration expenditures and share issuances:
|First Option||10%||$250,000||-||Upon TSX approval|
|Second Option||25%||$1,000,000||500,000||April 1, 2015|
|Third Option||12.5%||$1,000,000||375,000||March 1, 2016|
|Fourth Option||12.5%||$1,000,000||375,000||March 1, 2017|
|Fifth Option||10%||$2,250,000||1,000,000||March 1, 2018|
Upon completion of a positive feasibility study, Fjordland will issue a further 1,250,000 common shares to Commander.
Commander will be the initial operator of the project. Fjordland has the option to become operator upon assuming a majority interest. Commander has identified a strong electromagnetic ("EM") conductor flanking a large magnetic anomaly referred to as the Sandy prospect. Commander, as operator, will immediately initiate a $200,000 UTEM geophysical program designed to extend and delineate this specific drill target. Several other drill targets have been identified and will be tested after further geophysical groundwork and modelling. A drill program, currently budgeted at $1 million, is provisionally planned for the second quarter of 2015, dependent upon the results of the geophysical program. Work permits are in place and geophysical survey crews are being organized to commence work in October.
The Agreement is subject to approval by the TSX Venture Exchange.
About Commander Resources:
Commander Resources 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.
Bernard H. Kahlert P.Eng., a Director of Commander, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure of this news release.
On behalf of the Board of Directors,
"Eric W. Norton"
Eric W. Norton
President & CEO
For further information, please call:
Eric Norton, President and CEO
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.