Commander Options New Brunswick Properties to Stratabound Minerals
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/29/10 -- Commander Resources Ltd. (TSX VENTURE: CMD) announces that it has entered into an option agreement with Stratabound Minerals Corp. providing Stratabound the right to earn an initial 60% interest in Commander's Nepisiguit and Stewart properties, located in the Bathurst Mining Camp of New Brunswick.
Eric Norton, President & CEO, states: 'Commander is pleased that these properties are being optioned to a party who is actively drilling adjacent to us and are willing to commit to a work program in order to earn an interest in our properties. Commander is currently drilling on its extensive Baffin Island Gold Property and expects this region to be the focus of our efforts in the near future. Optioning out non-core properties is part of our strategy of value creation for Commander Shareholders by utilizing our portfolio of holdings.'
The Nepisiguit and Stewart properties (the 'Properties') adjoin the northern boundary of Stratabound's 100% owned CNE, Captain, and Captain East claims where they are currently drilling.
Under the terms of the option, Stratabound has the right to earn an initial 60% participating interest in the Properties over a 5 year period by issuing to Commander 400,000 Stratabound shares and completing $1,500,000 in eligible exploration expenditures. Stratabound will issue 50,000 common shares to Commander upon receipt of regulatory approval, and agrees to committed expenditures of $150,000 on the Properties in the first year, of which $50,000 must be expended by October 30, 2010. The first year's committed program must include at least 1,000 metres of diamond drilling.
Upon vesting its 60% interest, Stratabound may then, within 60 days, elect to increase its interest to 65% by incurring an additional $1,000,000 in eligible expenditures over a two year period and issuing an additional 100,000 Stratabound shares to Commander.
Once a joint venture is formed Commander may elect at any time to convert its interest into a 1% Net Smelter Returns Royalty (NSR). Stratabound will have the option, for 12 months following Commander's election, to buy one-half of the royalty on either property for $1 Million, or to buy one-half of the royalty on both properties for $2 Million.
Stratabound will be the operator during the term of the option, and will be the initial operator pursuant to any joint venture agreement entered into by the parties thereafter.
On Behalf of the Board of Directors,
Eric Norton, President & CEO
Shares Issued: 90,922,516
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contacts:
Commander Resources Ltd.
Cathy DiVito
Investor Relations
(604) 484-7111 or Toll-free: 1-800-667-7866
info@commanderresources.com
www.commanderresources.com