Millrock signs definitive agreement with Kinross
Millrock Resources Inc (C:MRO)
Shares Issued 46,863,744
Last Close 3/31/2010 $0.29
Monday April 05 2010 - News Release
Mr. Gregory Beischer reports
MILLROCK FINALIZES ALASKAN EXPLORATION AGREEMENT WITH KINROSS; DRILL PROGRAM TO COMMENCE AT COUNCIL GOLD DISTRICT ALASKA IN JULY
Millrock Resources Inc. has finalized an agreement with Kinross Gold Corp. to explore the Council district on the Seward peninsula of western Alaska, an area of extensive past placer gold production. Details of the preliminary agreement with Kinross were first reported in Stockwatch on Dec. 15, 2009.
With the signing of the definitive agreement, the property exploration partners are now planning an initial exploration program for 2010, scheduled to begin early July. The program will include approximately 2,500 m of drilling to test for hard-rock gold deposits in the uplands surrounding the historic placer workings.
The exploration agreement with Kinross covers a 900 sq km area of interest. The project is in western Alaska, approximately 100 km by road to the east of Nome in the Council Mining District, where over 300,000 ounces of placer gold have been produced. Millrock and Kinross are targeting sediment-hosted vein deposits in the project area and have discovered strong indications of such deposits through historic data compilation, and recent geological and geochemical surveys.
Kinross can earn a 55% joint venture interest in Millrock's Council properties, and any other properties secured by the companies in the Area of Interest by incurring exploration expenditures of US$3 million and paying Millrock a total of US$260,000. The initial cash payment is US$65,000 and the minimum 2010 exploration expenditure is US$500,000. Kinross may elect to increase its interest in the project to 75% by making a further US$3 million exploration expenditure. Millrock will be the project operator for 2010. The agreement includes provision for a private placement financing of C$250,000 in which Kinross will purchase shares of the Company based on a 20-day average of Millrock's market price. This share purchase is to be completed within 60 days subject to receipt of TSX Venture Exchange approval.
2010 Canjex Publishing Ltd.