VANCOUVER, BRITISH COLUMBIA, March 2nd, 2017 – Millrock Resources Inc. (TSX-V: MRO, OTCQX: MLRKF) (“Millrock” or “the Company”) announces that is has entered into an Option to Joint Venture Agreement with an affiliate of Kinross Gold Corporation (“Kinross”) concerning the Liberty Bell project in Alaska.
Gregory A. Beischer, Millrock’s President & CEO commented: “We are pleased that Kinross will enter another joint exploration effort with Millrock. This will be the third such collaboration between the companies. We are hopeful that this one will result in the discovery of a gold ore body”.
In order to earn a 70% joint venture interest, Kinross must, at its option:
- Provide US$5.0 million in exploration funding and property maintenance over 5 years;
- Pay up to US$145,000 in management fees if Millrock manages exploration programs throughout the duration of the Agreement; and
- Pay Advance Minimum Royalty (“AMR”) payments totalling US$145,000 over the 5 year period.
Upon vesting, Kinross will earn a 70% ownership in the Liberty Bell project and Millrock will retain 30%. Further exploration and development costs will be shared pro-rata. Millrock will acquire a 1.0% NSR royalty when the joint venture is formed. In the event that a party to the Agreement dilutes to less than 10% equity interest, such interest will convert automatically to a 2% NSR royalty, half of which may be purchased for US$1.5 million. AMR payments shall be payable to Millrock at the rate of US$40,000 per year. Total AMR payments under the option and joint venture agreements will be capped at US$500,000. Advanced minimum royalties will be deducted from any NSR royalty payable.
The project consists of claims owned outright by Millrock and other claims upon which Millrock holds an option to purchase a 100% interest from Boot Hill Gold Inc., a private Alaska firm. The acquisition of the property was announced by Millrock in October 2015. By the mutual agreement of Boot Hill Gold and Millrock, the term of this agreement has been extended to March 15, 2021. The payment schedule has also been changed such that the total payment, if the option to purchase is exercised in 2021, will be US$700,000.
The Liberty Bell project has potential for discovery of valuable gold deposits. A small gold deposit is known to exist on the property and the mineralization discovered by prior workers is a distal gold-bearing pyrrhotite skarn. A full project description can be found here.
Finder’s Fees will be payable by Millrock to Steven Borell of Anchorage, Alaska, and Curtis Freeman of Fairbanks, Alaska by Millrock. The fees will be calculated as a percentage of exploration expenditures and will become payable in 2018. The fees are subject to approval by the TSX Venture Exchange.