Vancouver, British Columbia - Commander Resources Ltd. (TSX-V: CMD) ('Commander') has sold 3,500,000 shares of Aston Bay Holdings Ltd. ('Aston Bay') to JP Morgan Asset Management UK Limited for gross proceeds of approximately $1,000,000. Commander was aided in the sale by its strategic advisor Red Cloud Klondike Strike Inc. and by SP Angel Corporate Finance LLP.
Commander retains 11 million Aston Bay shares representing 20.1% of the outstanding common shares of Aston Bay. Commander also has a 0.875-per-cent gross overriding royalty on the original core property at the Storm Copper project in Nunavut with Aston Bay having an option to reduce the royalty to 0.4 per cent for a one-time payment of $4-million.
Robert Cameron, President and CEO states, 'This sale allows for Commander to expand and progress its prospect generator business while our retained holdings in Aston Bay provides for a continued and significant exposure to developments at the Storm Copper Project.'
Remaining shares held by Commander are subject to a voting trust agreement with management of Aston Bay and are subject to a four-year escrow, in which the 11 million shares are released in instalments of 25 per cent per year, beginning one year after the closing of the agreement and are subject to a right of first offer in favour of Aston Bay.
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.
About Red Cloud Klondike Strike Inc.:
In connection with the transaction, Red Cloud Klondike Strike Inc. ('Red Cloud') acted as Commander Resources' strategic advisor. Red Cloud is an exempt market dealer focused on providing unique and innovative financing and growth solutions to mining companies.
On behalf of the Board of Directors,
Robert Cameron
President & CEO
For further information, please call:
Robert Cameron, President and CEO
Toll Free: 1-800-667-7866
[email protected]
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.