-- Posted Monday, 17 October 2011 | | Disqus
VANCOUVER, BRITISH COLUMBIA--(Marketwire -10/17/11)- Millrock Resources Inc. (TSX-V: MRO.V, MLRKF.PK) ("Millrock" or the "Company") announced today that it has entered into a Strategic Alliance agreement with Vale Exploration Canada Inc., a wholly-owned subsidiary of Vale S.A. ("Vale"). The objective of the alliance is to discover large-scale copper-gold porphyry deposits in target zones of Alaska identified by Millrock.
Gregory Beischer, President & CEO of Millrock stated: "We are very pleased to expand upon the business relationship previously established with this global mining company during the ongoing joint effort in Arizona. Successful exploration of the Alaska frontier requires a sustained effort over time. This new alliance will draw upon the technical abilities of both companies, maximize use of Millrock's geological database and local operational skill, and capitalize on the financial strength of Vale. We look forward to a highly successful collaborative effort in the coming years."
Under terms of the agreement Vale will provide funding to Millrock for further research and early-stage exploration work to identify targets that may be nominated for Designated Project status. The work is to be focused in specific, defined areas of interest in the Alaska Range and Alaska Peninsula porphyry belts. Strategic Alliance funding will consist of a minimum US$1.0 million in the first year, and a further US$1.0 million at Vale's option in the second year. Funding for the Strategic Alliance may continue in subsequent years at funding levels to be determined between the parties. Once Millrock nominates 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 to Joint Venture Agreement. Multiple nominations for Designated Projects may be made by Millrock. For Vale to earn a 65% interest in a Designated Project Vale will, at its option, expend US$3.5 million in exploration expenditures on the project over a three-year period, and pay Millrock US$200,000. Upon earning its initial interest, Vale may elect to carry the full cost of further exploration and development until a positive feasibility study has been completed, and thereby earn an additional 10% interest for a total 75% joint venture interest. Further development of such Designated Properties would proceed with the parties contributing on a pro-rata basis. In the event that a joint venture party dilutes below a 10% interest, such interest would convert to a Net Smelter Returns royalty of 2% on gold, silver, platinum, palladium and rhodium and 1% on all other metals.
About Millrock Resources Inc.
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 twelve active exploration projects, eight gold-copper properties in Alaska, and four porphyry copper prospects in Arizona. With funding primarily coming from its joint venture partners, Millrock is on track to carry out exploration programs with a total value of more than US$15 million in 2011. Business partners of Millrock include some of the leading names in the mining industry: Vale, Kinross, Teck, Inmet and Altius, as well as junior explorers Ryan Gold, Brixton Metals and Crescent Resources.
About Vale S.A.
Vale is the second-largest metals and mining company in the world and one of the 25 largest publicly traded companies in the world. Vale is the world's largest producer of iron ore and iron ore pellets and the world's second largest producer of nickel. Vale also produces manganese ore, ferroalloys, copper, thermal and coking coal, cobalt, platinum group metals and fertilizer nutrients. To support Vale's growth strategy, the company is actively engaged in a mineral exploration program, with efforts in 24 countries around the globe.
ON BEHALF OF THE BOARD
Gregory Beischer, President & CEO
Some statements in this news release contain forward-looking information, including without limitation statements as to planned expenditures and exploration programs. 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 and accuracy of this release.
Contact:
Millrock Resources Inc.
Gregory A. Beischer
(604) 638-3164
(604) 688-9620 (FAX)
www.millrockresources.com
-- Posted Monday, 17 October 2011 | Digg This Article
| Source: GoldSeek.com
