VANCOUVER, BRITISH COLUMBIA, January 05, 2017 – Millrock Resources Inc. (TSX-V: MRO) (“Millrock”) announces it has entered a strategic alliance agreement (“Alliance”) with Centerra Gold Inc. (“Centerra”). Under the Alliance Millrock will execute generative exploration and evaluate prospective properties to develop gold exploration projects. Centerra will provide funding of at least US$250,000 this year.
Millrock and Centerra may nominate projects developed under the Alliance that would become subject to an option to joint venture agreement between the companies. Multiple projects may result from Alliance work with a designated exploration budget for each project that will initially be funded by Centerra.
Upon making exploration expenditures of US$2.0 million on a designated project, Centerra will vest with an 80% joint venture interest and Millrock will retain a 20% interest. In the event that a party is diluted to a 10% equity interest, such interest will automatically convert to a 1.0% net smelter return royalty.
Millrock President & CEO Gregory A. Beischer commented: “Centerra has already taken on two of our Sonora gold projects. We are pleased that Centerra has now shown confidence in our Mexico exploration team by entering this strategic alliance.”
Millrock will operate exploration in Sonora from its operations base located in the City of Hermosillo, Mexico – the mining and exploration hub of Sonora.