Commander Announces the Sale of its Royalty Portfolio for US $4.1 Million (CDN $5.5 Million)

Rhea-AI Summary

Commander Resources Ltd. (CMDRF) has entered into a royalty purchase agreement to sell a portfolio of its royalty interests to a subsidiary of Taurus Mining Royalty Fund L.P. for $4.1 million in cash. The sale includes 5 royalties in Canada, with the transaction expected to close in Q1 2024. The company's President and CEO, Robert Cameron, stated that the transaction will unlock value for shareholders and provide non-dilutive funding for future exploration efforts.

Positive

• The sale of the non-core royalty portfolio will provide considerable funding for the company's ongoing and future exploration efforts.
• The transaction is expected to be highly accretive and non-dilutive, unlocking value for shareholders.
• The financial advisor and legal counsel for the transaction have been appointed, demonstrating a structured and professional approach to the deal.

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - January 25, 2024) - Commander Resources Ltd. (TSXV: CMD) ("Commander") reports that it has entered into a royalty purchase agreement dated January 22, 2024 to sell a portfolio of its royalty interests (the "Transaction") to a subsidiary of Taurus Mining Royalty Fund L.P., for total consideration of US $4.1 million in cash (CDN $5.5 million), to be paid upon closing of the Transaction.

Robert Cameron, President and CEO states, "This Transaction achieves a highly accretive monetization of our non-core royalty portfolio, unlocking value for shareholders and providing considerable, non-dilutive funding to re-deploy into the Company's ongoing and future exploration efforts."

Commander's royalty portfolio sale to Taurus is comprised of 5 royalties in Canada:

Asset	Location	Owner	Royalty
Hammerdown	Newfoundland	Maritime Resources	1% NSR
Storm, Seal	Nunavut	Aston Bay, American West	0.875% GOR
Destiny	Quebec	Big Ridge Gold	1% NSR
Mt. Polley	British Columbia	Imperial Metals	C$1.25-$2.50 per tonne milled (Boundary Zone)   C$1.25 per tonne milled (Polley Extension)
Tam/Misty	British Columbia	Northwest Copper	1.5% NSR

 

The Transaction is subject to customary closing conditions, including regulatory approval of the TSX Venture Exchange and is expected to close in Q1 2024.

GenCap Mining Advisory Ltd. acted as financial advisor for a service fee equal to 2.0% of the Transaction value payable in cash upon closing, and Harper Grey LLP acted as legal counsel to the Company in connection with the Transaction.

About Commander Resources

Commander Resources is a Canadian focused exploration company that has leveraged its success in exploration through a combination of partnerships and sole funded exploration. Commander has a portfolio of base and precious metal projects across Canada including our flagship Burn Project, a joint venture with Freeport-McMoRan Mineral Properties Canada Inc. The company has an aggressive plan to drill test additional copper gold targets over the next two years including our October Dome Copper and Gold porphyry target in central British Columbia and our Sabin VMS project in Ontario.

On behalf of the Board of Directors

Robert Cameron, P. Geo.
President and CEO

For further information, please call:

Robert Cameron, President and CEO
Toll Free: 1-800-667-7866
info@commanderresources.com

Twitter: @CommanderCMD
www.commanderresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward-looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/195451

FAQ

What is the ticker symbol for Commander Resources Ltd.?

The ticker symbol for Commander Resources Ltd. is CMDRF.

What is the total consideration for the royalty portfolio sale?

The total consideration for the royalty portfolio sale is US $4.1 million in cash (CDN $5.5 million).

How many royalties are included in the portfolio sale?

The portfolio sale includes 5 royalties in Canada.

Who is the financial advisor for the transaction?

GenCap Mining Advisory Ltd. acted as the financial advisor for the transaction.

What is the expected closing date for the transaction?

The transaction is expected to close in Q1 2024.

What is the role of Harper Grey LLP in the transaction?

Harper Grey LLP acted as legal counsel to the Company in connection with the Transaction.