Millrock Resources Inc. (
TSX: V.MRO,
Stock Forum) said Thursday it has formed a collaboration deal with a major gold mining company to look for high-grade gold deposits in Alaska.
Under the agreement, the major will fund research and reconnaissance exploration efforts undertaken in accordance with a multi-phase, open-ended, systematic program designed by a technical committee composed of representatives of both companies, Millrock said.
“This work will be focused on specific, defined, collaboration areas in Alaska, which the major and Millrock consider have the potential for high grade gold deposits,’’
the company said in a press release.
Millrock is engaged in early stage exploration and operates with a prospect generator business model.
On Thursday, the stock was unchanged at 32 cents, leaving a market cap of 6.2 million, based on 19.5 million shares outstanding. The 52-week range is 55 cents and 4 cents.
It means the company’s goal is to partner properties with quality companies who are interested in earning into projects by funding exploration.
The company is focused on the discovery and development of high value metallic minerals and is active in Alaska, the southwestern United States and Mexico.
The company’s main emphasis has been on gold and copper with a focus on porphyry and high grade vein style deposits.
Millrock has 8 active projects in Alaska, one uranium project in New Mexico and 11 in Mexico.
Under the Alaska collaboration deal, projects approved by a technical committee will each be subject to separate farm-in and joint venture agreements. Such agreements will provide for the major to acquire up to 80% of each project, after meeting minimum expenditure obligations and payments and after satisfaction or waiver of certain conditions.
Millrock said both parties have the option to terminate the collaboration agreement after a 30-day notice period. The notice period takes effect from the end of an identified phase or approved program.
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