October 03, 2006
Commerce Resources Corp. (TSXv: CCE) (FSE: D7H) (“the Company”) is pleased to announce that it has closed the first tranche of its private placement of up to a total of 10,000,000 units at a price of $0.30 per unit.
A total of 9,517,482 units were issued to 180 investors in this first tranche. 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 $0.45 per share until September 25, 2007. The common shares comprising the units bear a four month hold period, expiring on January 25, 2007. Finder’s fees totaling $85,062.50 and 11,500 common shares were paid in relation to the private placement.
Proceeds of $2,855,244 from this first tranche of the private placement will fund the Company’s ongoing exploration and development on the 100% owned Blue River Tantalum/Niobium Project and for general working capital. The Company anticipates closing the final tranche of the private placement shortly.
About Commerce Resources Corp. (http://www.commerceresources.com)
Commerce Resources Corp. is focused 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 Fir is also host to an inferred resource of 6.7Mt 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.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.