Commander Options Flume Project to K2 Gold, Yukon
VANCOUVER, BC - Commander Resources Ltd. ("Commander") (CMD:TSX-V) is pleased to announce that it has entered into an agreement with K2 Gold Corporation (“K2” or the “Company”) (KTO:TSX-V) allowing K2 to acquire the 3,680 Ha (36.8 km2) Flume property in the historical Ten Mile River gold district (or Gold District), 70km south west of Dawson City.
To earn an initial 60% interest K2 must spend $2 million in exploration ($200,000 firm commitment in year one), make cash payments totaling $400,000, and issue 1,000,000 shares to Commander in accordance with the following schedule:
- Upon signing K2 will pay Commander $25,000 and 100,000 shares of K2
- Year one anniversary – $35,000 and 100,000 shares
- Year two anniversary - $50,000 and 150,000 shares
- Year three anniversary - $75,000 and 150,000 shares
- Year four anniversary- $215,000 and 500,000 shares
Upon fulfillment of the initial option conditions K2 will have the right to earn a further 40% (total 100%) in the property over the 3 years following the 60% earn in by making an additional $3M in expenditures and making additional cash payments of $250,000 and issuance of a further 2M shares to Commander. If K2 has acquired 100% interest the Company and announces a decision to commence production it will pay Commander a balloon payment of either $10 million cash or $5 million cash and $5 million value in shares of K2.The Option is subject to certain customary conditions including without limitation to receipt of all necessary regulatory and third party approvals, including the approval of the TSX Venture Exchange (the “TSXV).Commander retains a 1% net smelter royalty (NSR).
Originally staked by Phelps Dodge in 1999, successive groups have since spent approximately C$3.5M exploring the property. This work has outlined a large 10 km by 3 km gold and arsenic soil anomaly covering the headwaters of Ten Mile and Sestak Creeks, both historical placer gold producers. High resolution airborne geophysics shows a northerly trending shear zone array within meta-sedimentary rocks coincident with the soil anomalies.
Recent work by Ryan Gold focused only on the southern portion of the Flume property. Work in 2012 included nine diamond drill holes at 300 metre to 500 metre spacing. They successfully intercepted broad shear zones with anomalous gold values in the plus 50 ppb range with local higher values in narrow widths including 2.25 g/t over 1m and 5.76 g/t over 2m.(see Ryan Gold press release dated November 6, 2012, filed on Sedar). K2’s work program will include refinement of drill targets in this area based on these results.
K2 also plans to work on an area 6 km north of the 2012 Ryan Gold drilling where a strong arsenic anomaly accompanies gold geochemistry over an area of8 km2 that has never been drilled. This northern target is defined by wide spaced soil androck sampling adjacent to and contiguous with White Gold Corp’s Dime target, which they have prioritized for further investigation and drilling in 2017.
Robert Cameron, President and CEO of Commander states, “Commander is pleased to have K2 Gold Corporation as a partner in advancing the Flume project. By demonstrating their ability make a discovery and manage a significant project through the sale process (Coffee Gold Project sold to Goldcorp in 2016) I am confident Flume will receive the requisite level of exploration and follow up”
Steven Wetherup, P. Geo. is a qualified person within the context of National Instrument 43-101, and has read and takes responsibility for the technical aspects of this release.
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.
On behalf of the Board of Directors
Robert Cameron, P. Geo.
President and CEO
For further information, please call:
Robert Cameron, 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.