Millrock Announces Agreement With Tocvan Ventures for El Picacho Project, Sonora, Mexico
08 Juni 2021 - 2:30PM
Millrock Resources Inc. (TSX-V: MRO, OTCQB: MLRKF) ("Millrock" or
the “Company”) is pleased to announce it has signed a Letter of
Commitment with Tocvan Ventures Corp. (CSE: “TOC”) (“Tocvan”) in
relation to the El Picacho gold project in the Caborca Orogenic
Belt, Sonora State, Mexico. Under the Letter of Commitment,
Millrock will reinstate a previously held Option Agreement (“Option
Agreement”) with concession owners Suarez Brothers, and assign the
option rights and obligations to Tocvan. In return, Tocvan will pay
back taxes owing on the mineral concessions and grant Millrock
certain royalty rights in an assignment agreement (“Assignment
Agreement”).
The Project is located 140 kilometers north of Hermosillo in
Sonora, Mexico and is fully accessible by road. Extensive surface
exploration has been conducted historically defining five gold
targets on the project. Millrock and Tocvan believe these targets
will be ready for drill testing with surface confirmation via
trenching. A permit is currently active to allow for trenching and
drilling on the Project. Prior to signing the definitive Assignment
Agreement between Millrock and Tocvan, the transaction is subject
to an additional 60-day due diligence period effective June 7,
2021.
About El Picacho
Location and Infrastructure
- Total Area: 2,413.7 ha
- Road accessible, 140 km north-northwest of Hermosillo
- Excellent Road access. Railroad on eastern edge of Project
- 18 km southwest of San Francisco Mine.
Historic Work Summary
- Five Orogenic Gold Targets Defined: San Ramon, Tortuga, El
Peurto, La Cornea, and El Jabali (see Figure 2)
- 2,650 rock samples collected
- Regional Scale mapping completed
- 3,548 soil samples collected, covering Project Area
- 70% of area covered by ground magnetic survey
- 17.8 line-km of IP surveys
- Limited drilling completed, widely spaced
- Fully permitted for drilling and trenching
Millrock President and CEO Gregory Beischer commented: “El
Picacho has great exploration potential for large-tonnage, bulk
minable gold deposits, and higher-grade, vein-hosted deposits. We
had previously dropped our option on the project, but it was
readily reinstated. In turn, we are very pleased to assign our
rights to Tocvan in exchange for royalty interests that may begin
cash flowing in a relatively short time period. Further, in the
event that Tocvan does not complete the underlying option with the
concession owners, the option rights will be returned to
Millrock.”
Terms of Option Agreement Upon assignment of
the Option Agreement held by Millrock to Tocvan, Tocvan must make
cash payments of $1,989,600 USD to the underlying concession owners
(the Suarez brothers) over a five-year term to acquire 100%
interest in the project. In the event that Tocvan elects to
withdraw from the Option Agreement, it must return the option
rights to Millrock.
Terms of Assignment AgreementIn the event that
Tocvan exercises its option to purchase a 100% interest from the
Suarez brothers, Millrock will vest with a 2% NSR royalty. Tocvan
may purchase back 1% for US$1.0 million. The royalty contains a
provision for an Annual Advance Minimum Royalty (“AMR”). The
initial AMR payment to Millrock would be US$25,000. The amount of
the AMR will double each year until commercial production occurs.
Any AMR payments made can be deducted from NDR royalty
payments.
Figure 1. Location of El Picacho
Project within the Caborca Orogenic Gold
Belthttps://www.globenewswire.com/NewsRoom/AttachmentNg/cc731bd0-9b20-44ff-98a9-88495cfd3d47Figure
2. Plan View Map of Target Areas at El
Picacho.https://www.globenewswire.com/NewsRoom/AttachmentNg/d5b10d3b-348d-4292-9d5d-eedc48276ef6
Qualified PersonThe scientific and technical
information disclosed within this document has been prepared,
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
recognized as the premier generative explorer in Alaska, holds
royalty interests in British Columbia, Canada, and Sonora State,
Mexico, is a significant shareholder of junior explorer ArcWest
Exploration Inc. and owns a large shareholding in Resolution
Minerals Limited. 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 and, Altius as well
as junior explorers Resolution, Riverside, PolarX, and Felix
Gold.
ON BEHALF OF THE BOARD“Gregory Beischer”Gregory
Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT:Melanee
Henderson, Investor RelationsToll-Free: 877-217-8978 | Local:
604-638-3164Twitter | Facebook | LinkedIn
Some statements in this news release may contain forward-looking
information (within the meaning of Canadian securities
legislation), including, without limitation, the intention to mount
further exploration including drilling in 2021 and the intention to
enter a lease agreement with Fairbanks Exploration, Inc. 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.
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