August 01, 2007
August 1, 2007— Commerce Resources Corp. (TSXv: CCE) (FSE: D7H) (the “Company”) is pleased to announce that it has closed its private placement of a total of 27,287,817 units at a price of $1.20 per unit, for gross proceeds to the Company of $32,746,181.
President of Commerce Resources David Hodge says: “The closing of this financing puts Commerce in a strong position in the tantalum and niobium world. The Commerce Board is committed to leveraging its current position to meet its stated goal of becoming the world’s next source of tantalum and niobium”.
The proceeds of this financing will be used to accelerate the Company’s continued exploration and development program on its tantalum and niobium properties located near Blue River, British Columbia, to conduct an exploration program at the newly acquired Eldor Carbonatite in Quebec, and for general working capital.
A total of 3,761,003 units were issued to 23 investors in the 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 $1.50 per share until June 26, 2009. The common shares comprising the units bear a four month hold period, expiring on October 27, 2007. Finder’s fees totaling $8,500 and 210,833 common shares were paid in relation to the private placement.
A total of 23,526,814 units were issued to 192 investors in the second 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 $1.50 per share for a period of two years. 14,674,600 of the units were issued on July 24, 2007 and these units bear a four month hold period expiring November 25, 2007 and the share purchase warrants are exercisable until July 24, 2009. The remaining 8,852,214 units were issued on August 1, 2007 and these units bear a four month hold period expiring December 2, 2007 and the share purchase warrants are exercisable until August 1, 2009. Finder’s fees totaling $1,748,057 and 51,879 common shares were paid in relation to the second tranche of the private placement. A total of 1,198,077 Broker’s Warrants were also issued, each Broker’s Warrant exercisable into one unit of the Company at a price of $1.20 per unit. Each unit consists of one common share and one share purchase warrant, exercisable into one common share at a price of $1.50 per share for a period of two years.
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.
For further details on Commerce Resources Corp. and the Blue River Tantalum-Niobium Property, visit the corporate website at www.commerceresources.com, or contact Investor Relations at (604) 484 2700 or toll free at (866) 484 2700.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
President and Director
Tel: 604 484 2700
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this release include statements regarding plans to become the world’s next source of tantalum and niobium, developing the Upper Fir deposit into production, as well as being the most active tantalum and niobium explorer in North America. It is important to note that actual outcomes and the Company’s actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental and technological factors that may affect the Company’s operations, markets, products and prices. Factors that could cause actual results to differ materially include misinterpretation of data; that we may not be able to get equipment or labor as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our property; market prices for tantalum & niobium may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company’s Management Discussion and Analysis of its audited financial statements filed with the Ontario Securities Commission.
The TSX Venture Exchange has neither approved nor disapproved the information contained herein