Commander says its ready to go shopping
Commander Resources Ltd (2) CMD
Shares issued 17,328,831 Jul 24 close $0.18
Thu 25 Jul 2002 News Release
Mr. William Coulter reports
COMMANDER SHOWS HEALTHY CASH INCREASE
As at July 18, 2002, the value of Commander's current assets and of its
Diamonds North convertible working capital loan exceeded $2-million. Adding
the value of Commander's Hammerdown $600,000 gold royalty to its share
portfolio increases this value to $3-million. Outstanding options and
warrants total 4,397,216. Should these be exercised, Commander's treasury
would receive an additional $1.4-million and would have 21,726,047 shares
issued.
Commander is now positioned financially to immediately enhance the value of
its present exploration properties and to look for new exploration
opportunities.
Commander owns 950,000 Diamonds North Resources Ltd. shares, 60,000 DDN
warrants and holds a $270,000 DDN (redeemable or convertible) working
capital loan, which could result in it owning an additional 840,000 DDN
shares. DDN is a Tier 1 TSX Venture Exchange company, which began trading
on July 15, 2002, under the symbol DDN. Commander shareholders received a
distribution of one share of DDN for each 3.5 shares of Commander.
DDN now owns all of Commander's diamond exploration assets in the Northwest
Territories and Nunavut, which include more than one million acres with 40
drill targets on eight different projects. DDN's exploration expenditures
for 2002 could reach $3-million, with the majority of this being
contributed by a number of partners.
The DDN shareholding gives Commander excellent exposure to diamond
exploration without any commitment to future exploration expenditures.
Property review
The Hammerdown, Nfld., gold mine in which Commander holds a $10 per ounce
royalty on all gold produced between 70,000 ounces and 130,000 ounces, has
now unofficially exceeded 70,000 ounces of production. At present
production rates, Commander will receive royalty income of $250,000 this
year with the balance of $350,000 in 2003. An additional royalty of $20 per
ounce of gold, produced for the balance of the mine's life, is payable
commencing after 200,000 ounce of production provided the price of gold on
the LME exceeds $290.00 (U.S.) per ounce.
At the Orion, Nfld., gold prospect an exploration drilling program has been
scheduled by Commander for early fall. Orion is owned 100 per cent by
Commander and is located in the vicinity of Hammerdown.
At Green Bay, Nfld., Hudson Bay Exploration & Development completed a large
drill program for volcanogenic copper rich massive sulphides. It does not
appear to have been successful in outlining targets that will satisfy
Hudson Bay's size criteria. Commander has received a notice of termination
together with the required property reports. Initial review of reports,
drilling and geophysics indicates the presence of a number of untested
targets, some of which will be tested during a fall drill program.
At South Voisey Bay, Labrador, Commander holds a 48-per-cent interest in
the Sarah Lake nickel joint venture with Donner Resources holding 52 per
cent. Falconbridge holds options to earn a 50-per-cent interest in the
Sarah Lake joint venture as well as in several other South Voisey Bay area
joint ventures. Falconbridge, as the exploration manager, is currently
completing detailed geophysical programs at Sarah Lake and other
properties. The results will determine Falconbridge's summer drill program.
At Despinassy, Que., the potential for additional work on this gold
property located near Val d'Or is under review, Commander has a 30-per-cent
joint venture interest in the project.
In Ontario and Yukon Territory Commander holds several gold, gold/copper
and copper/zinc prospects all of which have potential for the right
partner.
Going forward, Commander's challenge is to find projects that it can
realistically manage, finance and advance to the point of maximum financial
benefit for the shareholders.
Present market conditions make investment decisions difficult for an
investor. Future projections suggest an increasing demand for metal
commodities coupled with price appreciation from the present low levels.
Commander is healthy and is structured to survive and prosper as market
conditions improve. |
