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Prospect Generator with Joint Venture Opportunities
Commander Resources Ltd. (TSXV:CMD) is a resource company that was founded in 1989 and operates under the prospect generator model. The company has developed a portfolio filled with joint venture opportunities, exploration projects, royalties and investments across Canada and Mexico.
As a prospect generator, Commander Resources manages exploration risk by focusing on early-stage acquisitions and target identification. Any following exploration is conducted by option or joint venture partners, under which Commander Resources keeps either a small project interest and royalty or significant equity positions. This allows for the generation of income from property payments and shareholdings while reducing exploration risk exposure (dilution).
The company is well funded with approximately $1 million in cash and in excess of $1.2 million in marketable securities. In 2018, the company had an ongoing JV with Fjordland Exploration (TSXV:FEX) and High Power Exploration (HPX), which spent $1.2 million on the company’s South Voisey’s Bay project.
Commander Resources has a diversified royalty and property portfolio throughout Canada and Mexico that includes gold, copper, zinc, nickel and cobalt projects. This includes nine properties that are available for option. In2017, the company announced three option/joint ventures with $2.5 million in partner-funded exploration. Partner-funded exploration in 2018 totaled $1.2 million.
Over the course of its operations, Commander Resources has partnered with several mining companies, including Anglogold Ashanti Ltd. (NYSE:AU,ASX:AGG), Teck Resources Ltd. (TSX:TECK.A), Imperial Metals Corporation (TSX:III), Aston Bay Holdings (TSXV:BAY), Maritime Resources Corp. (TSXV:MAE) and others, illustrating Commander’s strong connections to the mining community — a critical requirement when seeking partnerships.
Commander Resources also owns approximately 2 percent of Maritime Resources, a company planning to re-open the past-producing Hammerdown mine within the next three years; Commander also owns a 2 percent NSR on the project. Maritime released a prefeasibility study (PFS) in 2017, which indicated an after-tax NPV (8 percent) of $44.2 million, after-tax IRR of 46.8 percent and a mine life of five years with an annual production of 35,000 ounces. The project boasts proven and probable reserves of 179,400 ounces, measured and indicated resources of 315,000 ounces and an inferred resource of 376,800 ounces of gold.
One of Commander Resources’ primary projects is the South Voisey’s Bay nickel-copper-cobalt project property in Labrador. The property is being developed as part of a joint venture with Fjordland Exploration and HPX. The project sits 85 kilometers south of Vale’s (NYSE:VALE) Voisey’s Bay mine, a major nickel and cobalt producer.
As for its other assets, Commander Resources has recently optioned its Burn copper-gold project in British Columbia to Freeport-McMoRan Mineral Properties Canada Inc. Freeport-McMoRan can earn a 75 percent interest in the property.
Commander Resources’ management team has over 85 collective years of experience in the mining industry and brings strong technical expertise in project generation.
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