checkAd

     143  0 Kommentare Millrock Reports Amendment to 64North Gold Project Option Agreement With Resolution Minerals, Alaska

    Highlights

    • The amendment provides Millrock with additional equity exposure in Resolution Minerals in return for a reduction in earn-in exploration expenditure requirements.
    • The amendment will allow Resolution Minerals to raise funds for continued drilling at the 64North gold project.
    • Resolution Minerals indicates it plans to drill at the Sunrise and East Pogo prospects in 2021.

    VANCOUVER, British Columbia, Feb. 09, 2021 (GLOBE NEWSWIRE) -- Millrock Resources Inc. (TSX-V: MRO, OTCQB: MLRKF) ("Millrock" or the “Company”) announces that it has agreed to an amendment to the existing option agreement concerning the 64North gold project that was signed and announced in 2019 with Resolution Minerals Ltd. (ASX: RML, “Resolution”). Resolution has recently earned a 30% interest in the project and can elect to increase its ownership to 42% this year through cash and share payments, as well as through additional exploration expenditures.

    Under the original agreement, Resolution would be required to spend US$5.0 million on exploration in 2021. To ultimately earn up to a 60% interest in the coming years, Resolution would have been required to spend a total of US$20 million. Under the terms of the amended agreement, the total spend required to earn 60% is now US$12 million. In return for this reduction, Millrock will be entitled to receive an increase of 12 million RML shares over the course of the option agreement and will receive an immediate payment of 15 million RML shares that otherwise would not have been made until February 2022.

    Millrock President & CEO Gregory Beischer commented: “The amendment is advantageous to Millrock because it provides the company with a larger shareholding in Resolution in advance of the coming exploration season. Upon exploration drilling success in 2021, a greater number of shares in hand now could mean greater financial returns for Millrock. Additionally, the reduced work requirement will afford Resolution a better chance of raising the needed capital for a planned 2021 drilling campaign at two excellent prospects: Sunrise and Boundary.”

    The table below summarizes the amended agreement terms.

    Stage RML US$ Work
    Requirements
    % Earn in
    Resolution
    RML Shares
    to Millrock
    Stage
    Completion
    Fee
    Drilling milestone (7,500 meters required) 5.0 million (to be paid now) n/a
    On signing     5.0 million (paid)  
    Year 1 5.0 million (spent) 30 % 10.0 million (paid) $50,000 (paid)
    Year 2* $5.0 is updated to $2.0 million 42 % 10.0 million (to be paid now) $100,000
    Year 3 $5.0 is updated to $2.5 million 51 % 4.0 million is updated to 10.0 million $100,000
    Year 4 $5.0 is updated to $2.5 million 60 % 4.0 million is updated to 10.0 million $100,000
    Totals $20 million is updated to $12 million 60 % 38 million is updated to 50 million $350,000

    *The required 2021 spend is inclusive of an approximate US$1 million carry-forward from 2020 exploration. All dollar amounts are United States dollars. The dollar values indicated are inclusive of an 8% management fee that Resolution may attribute to the spend.

    Seite 1 von 2


    globenewswire
    0 Follower
    Autor folgen

    Verfasst von globenewswire
    Millrock Reports Amendment to 64North Gold Project Option Agreement With Resolution Minerals, Alaska Highlights The amendment provides Millrock with additional equity exposure in Resolution Minerals in return for a reduction in earn-in exploration expenditure requirements.The amendment will allow Resolution Minerals to raise funds for continued …