Millrock and Inmet Announce New Partnership, Monsoon Project, Safford Copper District, Arizona
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/24/12 -- Millrock Resources Inc. (TSX VENTURE: MRO) ("Millrock" or the "Company") is pleased to announce that it has entered into an exploration and option agreement with Inmet Mining Corporation (TSX: IMN) ("Inmet") concerning Millrock's Rainville exploration permits. The project has been renamed Monsoon. Monsoon consists of a large block of Arizona State Exploration permits situated southeast of the town of Safford and south of the Morenci mine in southeastern Arizona. The Company has identified an area prospective for porphyry copper deposits. The Monsoon project is positioned along the trend of the prolific Safford deposits which are being actively developed by Freeport McMoran Copper & Gold. Regional geochemical surveys, geophysical surveys and geological modeling have led Millrock to believe there is potential for discovery of valuable porphyry copper deposits hidden beneath overburden on the exploration permits.
Under the terms of the agreement, Inmet may earn a 70% interest by incurring exploration expenditures totaling US$4.5 million and paying to Millrock US$400,000 by February 1, 2018. Upon exercise of the option, a joint venture will be formed, and further exploration and development costs will be shared pro-rata by Millrock and Inmet. In the event that either party dilutes to less than a 10% interest, an automatic conversion to a 2% NSR royalty will occur.
Millrock acquired the exploration permits through an agreement with private individual Michael Schaefer. Under the terms of the agreement, Millrock can maintain an option to purchase from the owner a 100% interest in the permits by paying a total of US$400,000 and issuing 500,000 Millrock common shares over a period of six years. If all option payments are made the property may be purchased for the sum of $1.0 million. A further payment of US$1.0 million will be made to the owner in the event that Millrock prepares a report that describes an indicated mineral resource (as that term is used in NI 43-101) of 1,500,000 tons or more of contained copper on the property. The cash payments to Schaefer will now be borne by Inmet until such time as a joint venture is formed between Millrock and Inmet and then paid on a pro-rata basis thereafter. Millrock will remain solely responsible for any share payments. The option to joint venture agreement between Millrock and Inmet is subject to acceptance by the TSX Venture Exchange.
The technical information in this news release was reviewed by Gregory Beischer, Millrock's President and CEO, 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. 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 plans to carry out exploration programs with a total value of more than US$10 million in 2012. Business partners of Millrock include some of the leading names in the mining industry: Kinross, Teck, Vale, Inmet and Altius, as well as junior explorer Crescent Resources.
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 the planned 2012 exploration program and budgets for Millrock's exploration efforts in Alaska and Arizona. 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."
Contacts:
Millrock Resources Inc.
Gregory A. Beischer
(604) 638-3164
(604) 688-9620 (FAX)
www.millrockresources.com