January 04, 2006
Commerce Resources Corp. (the “Company”) is pleased to announce that it has closed a private placement of 8,135,000 units at a price of $0.12 per unit for total gross proceeds to the Company of $976,200.
The proceeds of the private placement will fund the Company’s second and third phases of exploration and development on the 100% owned Blue River Tantalum/Niobium Project and for general working capital.
Management will seek proposals to complete a pre-feasibility study on the Blue River Tantalum/Niobium Project with a specific focus on the following:
1. The cost of producing various products including a tantalum and niobium concentrate, tantalum salt (K2TaF7), pure tantalum oxide (Ta2O5), ferroniobium and niobium oxide (Nb2O5). This part of the study will include the production of a bulk sample large enough to provide material for ongoing metallurgical test work, as well as sample products for distribution to potential industry partners.
2. A market study to determine the price and demand expectations over the projected mine life of the Blue River Carbonatites. This study will include discussions with major tantalum/niobium processors and mining companies to evaluate the potential for future customers or joint venture partnerships.
3. Investigations into the possibility of economically recovering other by-products including, but not limited to, uranium, phosphate and magnetite.
President Dave Hodge said, “We are pleased with the continued progress of the project, and are excited to be embarking on this significant step for the company. After contracting for the pre-feasibility study, the board will focus on adding development expertise to the management team, and seeking industry partnerships for development. Positive results from the pre-feasibility study will place Commerce Resources in a strong position to negotiate its place in the world tantalum supply chain.”
Each unit consists of one common share and one share purchase warrant which will entitle the holder to purchase one common share of the Company at a price of $0.18 per share. 585,000 of the common shares comprising the units bear a four month hold period expiring April 7, 2006. As well, the share purchase warrants comprising these units are exercisable into one common share until December 6, 2005. The remaining 7,600,000 common shares bear a four month hold period expiring April 21, 2006 and the share purchase warrants comprising these units are exercisable into one common share until December 20, 2006. Any common shares issued on exercise of the share purchase warrants shall bear that same hold period. A finder’s fees totaling $5,000 cash and 50,000 common shares was paid.
About Commerce Resources Corp.
Commerce Resources Corp. continues to maintain its focus on the development and exploration of its Fir and Verity tantalum and niobium projects covering 49 square kilometers in British Columbia, Canada. The Company is one of the most active tantalum explorers in North America, conducting detailed exploration of its Fir and Verity deposits. Exploration to date at the Fir deposit has outlined an indicated resource of 5.65Mt with 203.1g/t Ta2O5 and 1,047g/t Nb2O5 (Verzosa, 2003). The Verity deposit, 10 km north of the Fir property, is host to an estimated inferred resource of 3.06Mt with 196g/t Ta2O5, 646g/t Nb2O5 and 3.20% P2O5 (McCrea, 2001). Detailed information on both resource estimates may be viewed in the company’s public disclosure on SEDAR. Commerce Resources Corp. trades on the TSX Venture Exchange under the symbol “CCE”.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.