Millrock Resources (Vancouver: MRO) (OTC: MLRKF) — a risk-oriented, micro-cap penny stock — is a diversified, prospect-generating exploration company with a focus on Alaska, asserts Brien Lundin, junior mining specialist and editor of Gold Newsletter.
The company almost always uses joint-venture partners to fund the expensive drilling on its projects, but one of its targets was so exciting that it was about to fire up the drills on its own nickel.
Until an Australian company came up with an extraordinary deal that was simply too good to pass up.
Resolution Minerals offered to spend $5 million on Millrock’s 64North project over the next year, to earn just an initial 30% interest.
To increase that to a 60% interest, Resolution must spend $20 million plus issue 38 million in Resolution shares and make $200,000 in cash payments. Millrock will receive 8% of the 2020 expenditures on 64North as an operator fee.
This is an exceptional joint venture deal — perhaps the best I’ve seen in terms of immediate exploration commitment.
And here’s why Resolution is so excited about 64North: The project’s location immediately west of Northern Star Resources’ Pogo gold mine makes it a prime piece of real estate. That potential is boosted by geophysical surveys and other indications — including Northern Star’s drills marching right toward 64North.
To give you a sense of the scale of deposit the partners are after here, consider that Pogo has already generated four million ounces of gold and has another six million ounces remaining in reserves and resources.
To date, the market is giving Millrock almost no credit for this deal and this project. But that’s likely to change, as the drills begin turning at 64North in the weeks ahead and gold hits the next phase of this bull market.
