- Millrock has agreed to sell five projects, a geological database, and exploration equipment to Riverside Resources Inc.
- Consideration paid consists of cash, Riverside shares, and grant of royalties.
VANCOUVER, British Columbia, June 26, 2019 (GLOBE NEWSWIRE) -- Millrock Resources Inc. (TSX-V: MRO, OTCQX: MLRKF) ("Millrock" or the “Company”) reports that it has entered into an agreement to sell the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal claim blocks to Riverside Resources Inc. (“Riverside”). Millrock will also transfer the option it holds on the Santa Rosalia concession which forms part of the Los Cuarentas project. Millrock has also agreed to sell a copy of its exploration database, and various exploration equipment and vehicles to Riverside.
Consideration payable to Millrock is $35,000 cash and 150,000 Riverside common shares. Additionally, Riverside will grant a 0.5% net smelter returns (“NSR”) royalty on the El Pima and El Valle claims, and in the event that Riverside exercises the option on Santa Rosalia, it will grant a 0.5% NSR royalty on that claim.
Millrock and Riverside anticipate completing transfer of the properties and completing the agreement by August 31, 2019. The agreement is subject to approval by the TSX Venture Exchange. The Riverside shares issued to Millrock will have a four-month hold period commencing from the date of their issuance.
Millrock President & CEO Gregory Beischer commented: “We are pleased to have sold these projects to Riverside. We are bringing greater focus back to Alaska, and Riverside should be able to make good use of the database we have transferred to them. Ultimately we feel confident that Riverside will be able to find funding partners for the projects. If exploration on those projects is successful, Millrock shareholders will benefit from the portfolio of retained royalty interests.”
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 recognized as the premier generative explorer in Alaska, holds royalty interests in British Columbia, Canada and Sonora State, Mexico and is a significant shareholder of junior explorer ArcWest Exploration Inc. 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: EMX Royalty, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, and Riverside.
ON BEHALF OF THE BOARD
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT:
Melanee Henderson, Investor Relations
(877) 217-8978 (toll-free)
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, management’s expectation of completing the sale of certain assets in Mexico to Riverside and future exploration of the claims sold. 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 customary risks of the resource industry.