Oct 07, 2010
Commander Resources Ltd. (CMD-TSX Venture, "Commander") announces that the TSX Venture Exchange Inc. has accepted for filing an Option Agreement between Commander and BMB Capital Corp. dated June 14, 2010. BMB Capital Corp.'s common shares commenced trading on October 6, 2010 on Tier 2 of the TSX Venture Exchange under the new name "Maritime Resources Corp." and new trading symbol "MAE". Commander has been issued 12 million shares of Maritime as part of the transaction.
Eric Norton, President and CEO of Commander, stated: "The closing of this transaction demonstrates to Commander shareholders how we are able to increase value by leveraging our portfolio of properties. While the Orion Gold deposit is an excellent asset, it has been non-core to Commander and has not been recognized in our share value. Vending it into another company enables us to monetize this asset, while still retaining upside potential. The immediate value that we receive for 50% of the property is significantly more than its carrying value on our financial statements. Maritime Resources will be able to work on this property year-round while Commander maintains its focus on its other properties in Nunavut, Yukon and Labrador".
Maritime Resources has earned the right to acquire a 50% interest in Commander's Green Bay Property, located in the King's Point area, Newfoundland by issuing to Commander 12,000,000 common shares; and is responsible for funding all exploration expenditures and is committed to conduct $750,000 of mineral exploration activities on the Property by April 5, 2012. The Option Agreement also provides the Company the further option of increasing its ownership in the Property to 100% by issuing 5,000,000 additional common shares to Commander before the earlier of the date of commencement of commercial production and the expiry date of 5 years after the acquisition of the Initial Interest. In the event the Company exercises the Second Option to acquire a 100% interest in the Property, the 100% interest of the Company in the Property will be subject to a 2% net smelter royalty payable to Commander.
The primary asset on the Green Bay Property is the Orion Gold Deposit ("Orion") and surrounding Exploration Lands. Orion is located in an area of excellent infrastructure, 14 kilometres northwest of Springdale, Newfoundland. The Hammerdown Gold Mine is a former producer and is located within 2 kilometres of Orion. Diamond drilling was conducted by Major General Resources in the 1990's, and has enabled the establishment of an inferred resource of 202,715 ounces gold from 3,304,000 tonnes grading 1.968 g/t using a cut-off grade of 1 g/t Au over 1.20 metres. An independent NI 43-101 Technical Report on the property has recently been filed. Maritime has initiated plans for a diamond drill campaign, commencing in late 2010, to expand and define this resource.
Further particulars of the Green Bay Property and the Technical Report can be found on Commander's website.
Commander also reports the grant of 100,000 incentive stock options to a director of the Company under its stock option plan, in accordance with the Company's compensation policy. The options are exercisable for five years at a price of $0.18 per share, and are subject to the policies of the TSX Venture Exchange.
On behalf of the Board of Directors,
Eric W. Norton
President & CEO
For further information, please call:
Investor Relations: Cathy Divito
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.