64North Gold Project Option Agreement With Resolution Minerals
VANCOUVER - Millrock Resources Inc. has agreed to an amendment to the existing option agreement concerning the 64North gold project that was signed and announced in 2019 with Resolution Minerals Ltd. (ASX: RML, “Resolution”). Resolution has recently earned a 30% interest in the project and can elect to increase its ownership to 42% this year through cash and share payments, as well as through additional exploration expenditures.
Under the original agreement, Resolution would be required to spend US$5.0 million on exploration in 2021. To ultimately earn up to a 60% interest in the coming years, Resolution would have been required to spend a total of US$20 million. Under the terms of the amended agreement, the total spend required to earn 60% is now US$12 million. In return for this reduction, Millrock will be entitled to receive an increase of 12 million RML shares over the course of the option agreement and will receive an immediate payment of 15 million RML shares that otherwise would not have been made until February 2022.
President and CEO, Gregory Beischer, said, “The amendment is advantageous to Millrock because it provides the company with a larger shareholding in Resolution in advance of the coming exploration season. Upon exploration drilling success in 2021, a greater number of shares in hand now could mean greater financial returns for Millrock. Additionally, the reduced work requirement will afford Resolution a better chance of raising the needed capital for a planned 2021 drilling campaign at two excellent prospects: Sunrise and Boundary.”