VANCOUVER, BC–(Marketwired – June 14, 2017) – Millrock Resources Inc. (TSX VENTURE: MRO) (“Millrock”) announces two separate option agreements whereby it has granted an option to Sojourn Ventures Inc. (TSX VENTURE: SOJ) (“Sojourn”), which may purchase a 100% interest (subject to a royalty provision) in the Willoughby and Oweegee Dome projects in the Golden Triangle mining district northeast of the Town of Stewart, British Columbia, Canada.
Sojourn must make share issuances and incur exploration expenditures over three years in order to exercise the options and take ownership of the properties. The transaction and Sojourn’s plans are more extensively described in their press release here. After the first share issuance and the equity financing contemplated by Sojourn, Millrock will own approximately 15% of the issued and outstanding shares of the company.
Gregory A. Beischer, President & CEO of Millrock commented: “Historically Millrock has made exploration agreements primarily with major mining companies. However, we anticipate that shares of junior gold exploration companies will do well in the coming years. Millrock will become a major shareholder of Sojourn and as a result, our shareholders may realize the best value possible for these assets. Millrock will execute the initial exploration programs on the properties on behalf of Sojourn and in return will be entitled to a management fee. We look forward to advancing these exciting gold and copper projects.”
Option Agreements
To exercise the option agreements on the two properties, Sojourn must issue the following common shares of Sojourn to Millrock and incur the following expenditures on the two properties:
| Property | Shares: Year 1 |
Work: Year 1 |
Shares: Year 2 |
Work: Year 2 |
Work: Year 3 |
| Willoughby | 800,000 | $200,000 | 1,040,000 | $600,000 | $1,200,000 |
| Oweegee | 1,000,000 | $350,000 | 1,300,000 | $650,000 | $1,000,000 |
At the completion of the share payments and work commitments, Sojourn will have earned a 100% interest in the properties subject to certain Net Smelter Return (NSR) royalties. Upon exercise of the option on the Oweegee Dome project, Millrock will vest with a 2% NSR royalty. On Willoughby, Millrock will vest with a 1.5% NSR royalty.
Attributes of the Willoughby high-grade gold – silver project have been described by Millrock in a press release found here. Exploration progress made by Millrock on the Oweegee Dome porphyry copper-gold project was described in this press release. Summary descriptions of all Millrock’s Golden Triangle district projects can be found at this link.
Investor Rights Agreement
Concurrently with entering into the Option Agreements, Sojourn and Millrock entered into an Investor Rights Agreement which entitles Millrock to participate in future Sojourn Placements to maintain its percentage interest in Sojourn provided Millrock holds at least 7.5% of Sojourn’s issued and outstanding common shares. The Investor Rights Agreement also entitles Millrock to nominate one director to Sojourn’s board of directors as long as it continues to hold at least a 7.5% interest in Sojourn. Millrock has also granted Sojourn a one-year right of first refusal over Millrock’s Todd Property, located near the Willoughby and Oweegee Properties.
The agreements are subject to the approval of the TSX Venture Exchange, approval of an individual from whom most of the Willoughby tenures were purchased previously by Millrock, and upon completion of the equity financing contemplated by Sojourn.
The technical information within this document has been reviewed and approved by Gregory A. Beischer, President, CEO and a director of Millrock Resources. Mr. Beischer is a Qualified Person as defined in NI 43-101.
About Millrock Resources Inc.
Millrock Resources Inc. is a premier project generator to the mining industry. 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 taken on by most exploration companies. The company is active in Alaska, British Columbia, the southwest USA and Sonora State, Mexico. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, and Riverside.
ON BEHALF OF THE BOARD
“Gregory Beischer”
Gregory Beischer, President & CEO
Some statements in this news release contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.
“NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.”
FOR FURTHER INFORMATION, PLEASE CONTACT:
Melanee Henderson
Investor Relations
(604) 638-3164
(877) 217-8978 (toll-free)