June 26, 2007
Commerce Resources Corp. (“the Company”) is pleased to announce that it has closed the first tranche of its private placement of up to a total of 12,500,000 units at a price of $1.20 per unit.
A total of 3,761,003 units are in the process of being issued to 23 investors in this tranche, raising initial proceeds of $4,513,203. 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 $1.50 per share until June 26, 2009. The common shares comprising the units will bear a four month hold period expiring October 27, 2007. Finder’s fees totalling $8,500 and 210,833 common shares are being paid in relation to the private placement.
Commerce Resources has now received commitments for the portion of the private placement that was the Company’s stated goal as announced on June 13, 2007. The portion that is being raised by Shoreline Pacific LLC, is in process and the company is confident that they will be successful in closing their institutional portion shortly.
Proceeds from the private placement will fund the Company’s ongoing exploration and development on the 100% owned Blue River Tantalum/Niobium Project, the exploration of the recently acquired Eldor carbonatite in Quebec, and for general working capital.
About Commerce Resources Corp.
Commerce Resources Corp.’s stated goal is to become the world’s next source of tantalum and niobium. Commerce is the most active tantalum and niobium explorer in North America, with a focus on developing its Upper Fir deposit into production.
Exploration to date at the Upper Fir deposit has outlined an indicated resource of 8.6Mt with 208.2 g/t Ta2O5 and 1,372.6 g/t Nb2O5 and an inferred resource of 5.5Mt with 208.2 g/t Ta2O5 and 1,349.9 g/t Nb2O5 (Gorham, 2007). 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 Fir is also host to an inferred resource of 6.7Mt with 196g/t Ta2O5, 646g/t Nb2O5 and 3.20% P2O5 (McCrea, 2001). The Verity deposit, 10 km north of the Fir property, is estimated to host an inferred resource of 3.06Mt with 196g/t Ta2O5, 646g/t Nb2O5 and 3.20% P2O5 (McCrea, 2001).
Previous exploration at the recently acquired Eldor Carbonatite returned results ranging from >1.0% to 11.4% Nb2O5 (>10,000 g/t to 110,000 g/t Nb2O5) and from >0.01% to 0.21% Ta2O5 (100 g/t to 2,100 g/t Ta2O5). Commerce plans to conduct an extensive program of exploration on the Eldor Carbonatite this summer.
Detailed information on both resource estimates for the deposits may be viewed in the company’s public disclosure on SEDAR.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.