May 06, 2009 Commander Earns 100% Interest In The Qimmiq Gold Property, Baffin Island
Commander Resources Ltd. (CMD-TSX Venture) is pleased to report that it has exercised its right to accelerate its interest to 100% in the Qimmiq Property from BHP Billiton Diamonds Inc. ("BHP Billiton Diamonds") after the parties agreed to waive the $400,000 cash payment required under the Option Acceleration Agreement announced January 14, 2008 and finalized February 22, 2008.
The Qimmiq Property covers 23,600 Hectares (58,000 acres) and about 80 linear kilometres of a district scale gold belt that Commander controls. The Qimmiq Property is host to the main gold zones in the belt, including Malrok, Ridge Lake and the newly discovered Hébert zone. This Property encompasses the core of the Baffin Gold Project.
Vesting follows re-negotiation of an Option Acceleration Agreement, which initially provided Commander the right to accelerate its right to earn a 100% interest in the property by making a single cash payment of $400,000 to BHP Billiton Diamonds by September 30, 2008. After several extensions to the agreement, BHP Billiton Diamonds agreed to waive the cash payment required to accelerate the option. The Acceleration Agreement eliminates all other earn-in requirements that were part of the original option agreement and entirely eliminates BHP Billiton Diamonds' back-in rights.
BHP Billiton Diamonds retains certain rights, including a Right of First Refusal ("ROFR") to purchase all or any portion of the concentrates or other such mineral products that may be produced from non-gold resources on the Property. BHP Billiton Diamonds' ROFR shall apply only to 50% of non-gold concentrates during the first four (4) years of commercial production; the other 50% of the non-gold concentrates shall be available for Commander to support or facilitate mine financing terms and other project capitalization. BHP Billiton Diamonds shall retain a ROFR to match such financing terms. Commander will have 100% control over the sale and marketing of all gold concentrates or gold products produced from the Property. BHP Billiton Diamonds will not retain a ROFR or any other rights to gold concentrates or gold products that may be produced from the Property. Certain royalties on the Property are held by International Royalty Corporation and will remain attached to the Property.
ABOUT COMMANDER RESOURCES LTD.
Commander Resources Ltd. is a junior exploration company focused on gold and base metal exploration in Canada. The strength of Commander comes from a combination of aggressive land acquisition and strategic partnerships to increase exposure to discovery while mitigating risk to the shareholders. Diversification is the cornerstone of Commander's strategy and is reflected in its extensive property portfolio including the main projects, Baffin Island Gold and Storm Copper.
On behalf of the Board of Directors,
Kenneth E. Leigh
President & CEO
For more information, please call
Investor Relations: Cathy Divito
Toll Free: 1-800-667-7866 www.commanderresources.com
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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