www.millrockresources.com
Millrock Resources Inc. is a premier project generator to the mining industry. In the search for world-class gold and copper deposits in mineral rich Alaska and Arizona, Millrock identifies, packages and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk and attendant shareholder dilution taken on by most exploration companies. Millrock currently has eleven active exploration projects, eight gold-copper properties in Alaska, and three porphyry copperprospects in Arizona. With funding primarily coming from its joint venture partners, Millrock plans to carry out exploration programs with a total value of more than US$14 million for 2011. Business partners of Millrock include some of the leading names in the mining industry: Kinross, Teck, Vale, Inmet and Altius, as well as junior explorers Ryan Gold, Brixton Metals and Crescent Resources.
Millrock Resources and Altius amend alliance to fund operations and attract JV partners
Millrock Resources (TSX-V: MRO) has amended its strategic alliance with Altius Minerals Corp over joint operations in Alaska, which it said would provide the ongoing staking and reconnaissance activities in the state with early funding and draw in more JV (joint venture) partners as several gold and copper prospects have already been identified.
Millrock has agreed to up the NSR (net smelter royalty) paid to Altius to 2% on gold and 1% on other commodities, while the latter will withdraw from planned joint venture agreements on the Monte Cristo and St. Eugene properties.
IN order to provide the Alaskan operations with immediate funding, Altius will now exercise all of the Millrock warrants it holds for 4.22 shares at US$0.30 per share before 10 June and Millrock will issue new five year warrants for 3.45 million shares at US$0.45 per share.
Millrock is still required to expend all funds from Altius' exercise of warrants, and from its original private placement, on the alliance's area of interest.
The alliance between the two companies was launched a year ago to identify and stake prospective mineral properties suitable for earn-in joint venture agreements with third parties. The initiative has already produced several new projects, having identified “exciting” gold and copper-gold prospects in Alaska.
The amendments are meant to streamline the joint venturing process and raise new capital through accelerated warrant exercise.
“The revised agreement is designed to simplify the joint venturing process as we attract other mining companies to our areas of interest to help finance exploration. The amended agreement also calls for an early exercise of warrants by our partner Altius which provides a substantial cash injection to fund ongoing reconnaissance and staking,” said President of Millrock Gregory Beischer.
Mining investment newsletter Lawrence Roulston’s Resource Opportunities (LRRO) has recently initiated coverage of Millrock, expecting the news flow from the projects over the coming weeks to attract a great deal of attention from investors. LRRO said Millrock has assembled an exceptional property position and attracted some very strong partners. Those partners validate the geological concepts and also provide the financial and technical support to carry out large-scale exploration projects.
Millrock has eight exploration projects in Alaska, and three in Arizona. Four of these projects have joint venture partners funding work expenditures. Drilling is planned on four of the projects in 2010.
