Millrock Enters Binding Letter Agreement Concerning Dragonslayer Copper-Gold Project
VANCOUVER, BRITISH COLUMBIA—Millrock Resources signed a binding letter agreement whereby First Quantum Minerals Limited (FQML) has been granted the exclusive right to enter an option agreement on Millrock’s Dragonslayer porphyry copper-gold project in eastern Alaska. To earn the right FQML is funding geochemical surveys, mapping, and prospecting to a value of $100,000. Results are anticipated in October. The work is focused on a geophysical anomaly located in a belt of Cretaceous-aged rocks that have demonstrated potential for copper porphyry deposits. The geophysical anomaly consists of a conductive zone surrounding a magnetic high in a low-lying area with little outcrop exposure. The target was detected using an airborne ZTEM and magnetic susceptibility survey. Upon receipt of the current exploration survey results, FQML will have until December 31, 2019 to exercise its exclusive right to enter an option to joint venture agreement with the following business terms:
To exercise the first option to earn a 51 percent interest, FQML must make exploration expenditures and cash payments as listed in the table below:
After the initial earn-in, FQML can increase its interest to 70 percent by defining a NI 43-101 compliant Inferred Resource of at least 1 million tonnes of contained copper equivalent (a “Resource”) and filing a qualifying report on SEDAR documenting that Resource, provided it continues to sole-finance the project until a Resource has been filed on SEDAR.
After vesting with a 70 percent interest, FQML may elect to exercise a third option to earn another 10 percent interest in the project, bringing their total interest to 80 percent. To complete the third option, FQML will sole-fund the project through permitting and construction until commercial production is achieved, including funding Millrock’s proportionate share of funding on behalf of Millrock. All funding advanced by FQML on behalf of Millrock’s proportionate share of funding will be repayable by Millrock from proceeds from production. If FQML does not exercise the third earn-in, then Millrock must co-contribute its proportional share of expenditures to maintain its 30 percent interest in the property.
The Dragonslayer project consists of sixty State of Alaska mining claims recently staked by Millrock. The mineral rights cover an area of 3,885 hectares.
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