Millrock Announces Definitive Assignment Agreement With Tocvan Ventures for El Picacho Gold Project, Sonora, Mexico
20 Septembre 2021 - 2:30PM
Millrock Resources Inc. (TSX-V: MRO, OTCQB: MLRKF) ("Millrock" or
the “Company”) is pleased to announce it has signed a definitive
assignment agreement (“Assignment Agreement”) with Tocvan Ventures
Corp. (CSE: “TOC”) (“Tocvan”) concerning the El Picacho gold
project (“Project”) in the Caborca Orogenic Belt, Sonora State,
Mexico. This agreement follows from a Letter of Commitment
previously announced on
June 8, 2021 and
successful completion of a 60-day due diligence period by Tocvan.
Millrock has reinstated a previously held Option Agreement
(“Option Agreement”) with concession owners Suarez Brothers and has
now assigned the option rights and obligations to Tocvan. In
return, Tocvan has paid back taxes owed by the Suarez Brothers on
the mineral concessions and has granted to Millrock certain royalty
rights in the Assignment Agreement. In the event that Tocvan
exercises its option to purchase a 100% interest from the Suarez
brothers, Millrock will vest with a 2% Net Smelter Returns (“NSR”)
royalty. Tocvan may purchase back 1% of the royalty for US$1.0
million. The royalty contains a provision for an Annual Advance
Minimum Royalty ("AMR") that will be triggered if Tocvan exercises
the Option Agreement. 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 NSR royalty payments.
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.
Each of these royalty agreements that Millrock makes is accretive
to the overall value of the company. Millrock’s Hermosillo-based
staff have extensive knowledge of the Project and have offered
exploration services to Tocvan.”
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.
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 (see Figure 2)
- San Ramon
- Tortuga
- El Peurto,
- La Cornea
- El Jabali
- 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
Terms of Option Agreement Upon assignment of
the Option Agreement held by Millrock to Tocvan, Tocvan must make
cash payments of $1,989,600USD 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.
Figure 1. Location of El Picacho
Project within the Caborca Orogenic Gold
Belthttps://www.globenewswire.com/NewsRoom/AttachmentNg/841040e2-58ca-4b50-bc2f-65da763bb085
Figure 2. Plan View Map of
Target Areas at El
Picacho.https://www.globenewswire.com/NewsRoom/AttachmentNg/83f495c1-bd6e-4dc1-8965-bbaefceb86d0
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, Felix Gold, and
Tocvan.
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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