Commander Resources (CMD-V) reports that Aston Bay Holdings (BAY-V), who have optioned and are earning into Commander's Storm copper and Seal zinc properties, have entered into discussions with a major mining company to form a Joint Venture in the properties. Aston Bay has announced that they are entering into a period of exclusivity until conclusion of a Memorandum of Understanding or June 30 (whichever is earlier), in which to define the terms of a JV agreement in exchange for the sum of $50,000.
Under the terms of the current agreement between Commander and Aston Bay, Aston Bay may earn a 50.1% interest in the properties by spending $6 million in work, and may increase their interest to 70% by investing a further $9 million and delivering an Indicated Resource on the property. After earning 70%, Aston Bay may elect to buy out Commander's remaining 30% interest for the sum of $15 million, or 20% of Aston Bay's market cap, whichever is greater. Commander also holds a 0.875% Gross Over-riding Royalty on production from the properties. Aston Bay may buy down the Royalty to 0.4% for the sum of $2 million in 2014, increasing by $1 million each year thereafter.
Commander is very encouraged at the progress that Aston Bay has achieved with this project since acquiring the Option in 2011. The interest and potential involvement of a sophisticated major mining company validates the quality of the property and indicates the potential value that this property may bring to Commander shareholders.
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-V) (11.9M shares) and Aston Bay Holdings (BAY-V) (3.2M shares). 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 |
