Our Philosophy
Millrock rigorously adheres to the Project Generator Model.
A project generator maintains a portfolio of multiple projects and funds major exploration work by creating joint-venture partnerships with other companies. They acquire prospects they deem to have significant mineral potential and option them to a partner, generally a mid-tier or major mining company. In exchange for a majority share of the project, the partner agrees to spend a certain dollar amount, generally in the millions of dollars, progressing the project forward.
The model enables the project generator to de-risk mineral exploration by accessing capital from partner companies to fund the high-risk and expensive drilling phases of exploration. For Millrock, this means only spending shareholder’s money on the earliest stages of exploration and mineral acquisition, which are relatively inexpensive compared to drilling.
Typically, a project generator has multiple projects partnered with multiple partners at any given time. This increases the chances of exploration success and share price increase. The company can expand its business without having to go back to the market to raise funds.
In addition, revenues can be derived if the partner makes cash payments in the form of option agreement payments and management fees, or in the case of a junior company partner, share issuances to complete the earn-in.