| ||December 06, 2006|
Commander Increases Uranium Holdings
| ||Commander Resources Ltd. (CMD-TSX Venture) has entered into an agreement with Bayswater Uranium Corp (BAY-TSX Venture) to acquire 50% of Bayswater's right to earn a 90% interest in the 3,212-acre Murphy property strategically located east and contiguous with the Company's large Hermitage Uranium property. Rock chip samples collected by the Company on the Hermitage property included results ranging from 0.27 per cent to 3.1 per cent U3O8 within a few kilometres of the Murphy property boundary. The Company has recently commenced a 3,000 metre drill program on the Hermitage and Strickland uranium properties, details of which can be found on the Company's website at www.commanderresources.com.|
The Company agrees to immediately form a 50:50 Joint Venture with Bayswater to explore the Murphy claims by assuming 50% of the obligations of the Option agreement between Murphy and Bayswater. The first year obligations attributable to the Company include a cash payment of $12,500 and issuance of 80,000 shares of the Company to Bayswater, and funding $50,000 in exploration expenditures.
Based on the terms of the Murphy option agreement, the Company's share of optional obligations following the first year committed payments and expenditures include additional cash payments of $175,000, issuing to Bayswater shares in the Company equal to 450,000 shares of Bayswater over three years and contributing $450,000 in exploration expenditures over four years. Assuming the Murphy option fully vests and the Company remains an active JV participant throughout the term of the option, the resulting interests will be 45% as to Commander, 45% as to Bayswater and 10% as to Murphy. The underlying owner's 10-per-cent property interest will be carried to commercial production; prior to production, the interest may be converted to a 3-per-cent net smelter return royalty (NSR) on production. Bayswater may reduce the NSR to 2 per cent by paying the owner $2-million, of which $1 million would be payable by the Company.
The Agreement is subject to approval by the TSX Venture Exchange.
About Commander Resources Ltd.
Commander Resources Ltd. is a Canadian junior exploration company that controls one of the largest new gold districts in Canada and a new uranium belt in Newfoundland. Commander's underlying mission is to generate or acquire quality opportunities and add significant shareholder value through discovery of mineral deposits, leveraged partnerships, and/or sale of assets.
On Behalf of the Board of Directors,
President & CEO
For further information, please call: Commander Resources Ltd.
Telephone: (604) 685-5254 or 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.
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