February 08, 2006
Commerce Resources Corp. (CCE - TSX Venture) (the “Company”) has completed a property option and joint operation agreement on its historic gold and copper targets known as the Au Claims with Victory Resources Corp. (VR - TSX Venture) (“Victory”).
Commerce Resources Corp. and a third party (collectively “the Optionors”) have granted an option to acquire, subject to an underlying 2% net smelter return royalty, up to an undivided 70% interest in and to certain mineral property interests comprised of two claim blocks (104 units totalling 2,600 hectares) which are located in the Nicola Mining Division approximately 30 kilometres east of Merritt, British Columbia (collectively, the “Property”).
“Victory’s fresh eyes on historical data holds promise for the AU Claims that have in the past produced drill results including a 6.55m intercept averaging 16.57g/t Au, 12.9g/t Ag and 0.75% Cu. We look forward to the results of their exploration activity in 2006,” said David Hodge, President of Commerce Resources.
In accordance with the terms of the Option Agreement, and in order to exercise its Option to acquire up to an initial 50% undivided interest in and to the mineral interests comprising the Property, Victory is required to:
(a) Cash payments: pay to the Optionors cash payments in the aggregate of $20,000 in the following manner: (i) $10,000 within two business days of the execution of the Option Agreement; which sum has been paid; and (ii) $10,000 on or before March 1, 2006;
(b) Share issuances: issue to the Optionors a total of up to 200,000 fully paid and non-assessable common shares in the capital of the Company, at a deemed issuance price of $0.30 per Option Share, in the following manner: (i) 100,000 upon approval of the TSX Venture Exchange; which initial Option Shares have been issued, and (ii) the final 100,000 of the Option Shares on or before March 1, 2006; and
(c) Expenditure requirements: provide funding of minimum cumulative expenditures for exploration and development work on the mineral interests comprising the Property of at least $250,000 on or before March 1, 2007.
In addition, and in accordance with the terms of the Option Agreement, once the Company has earned its initial 50% undivided interest in and to the Property as set forth hereinabove, the Company shall have the further option to acquire a further 20% undivided interest in and to the mineral interests comprising the Property by paying to the Optionor, on or before the third anniversary date of the Option Agreement, additional consideration of: (i) $10,000 in cash; and (ii) 50,000 fully paid and non-assessable common shares in the capital of the Company.
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 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.