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 forms strategic alliance with Vale for copper-gold Alaska deposits
Millrock Resources (CVE:MRO) said Monday that it has partnered with Vale Exploration Canada, a subsidiary of Brazil's metals giant Vale (NYSE:VALE), to look for large scale copper and gold porphyry deposits in Alaska.
The work is to be focused in specific, defined areas of interest in the Alaska Range and Alaska Peninsula porphyry belts.
According to the agreement's terms, Vale will provide funding to Millrock of a minimum of US$1 million in the first year and a further US$1 million in the second year at Vale's option for early-stage exploration work to identify targets.
Funding may continue in subsequent years at funding levels to be determined between the parties, Millrock said in a statement.
Once Millrock nominates a property as a "designated project", Vale will have 180 days in which to accept or decline the project. If accepted, the mineral rights will be held in Millrock’s name, but the designated project will become subject to an earn-in style option or joint venture deal. Millrock can nominate multiple properties for this status.
For Vale to earn a 65 percent stake in the designated project, it must spend US$3.5 million in exploration expenditures over three years, and pay Millrock US$200,000. After earning its initial stake, Vale can elect to pay for further exploration and development costs until a feasibility study has been finished, boosting its interest to 75 percent.
Further development of designated properties would continue, with the parties contributing on a pro-rata basis.
In a statement, Millrock’s chief executive, Gregory Beischer, said the alliance draws on the technical abilities of both companies, using its geological database and local operational skills, and capitalizing on the financial strength of Vale.
Millrock said if a joint venture party dilutes its interest to below 10 percent, the interest will be converted into a net smelter returns royalty of 2 percent on gold, silver, platinum, palladium and rhodium, and 1 percent on all other metals.
Millrock has twelve active exploration projects, namely eight gold and copper properties in Alaska, with four copper prospects in Arizona.
Shares of Millrock rose 3 cents, or 5.32 percent, reaching a high of 50 cents Monday afternoon on the junior Toronto Stock Exchange.
