VANCOUVER, BRITISH COLUMBIA, May 4, 2010 - Millrock Resources Inc. (MRO - TSX:V) ("Millrock" or "The Company") announced today it has signed a letter agreement with Teck American Incorporated ("TAI"), a subsidiary of Teck Resources Limited ("Teck") for a private placement financing for further exploration of Millrock's Estelle gold property northwest of Anchorage, Alaska. "Millrock is pleased to have Teck as a shareholder, and we look forward to working with them on the Estelle project," said Gregory Beischer, President & CEO of the Company. "We will be initiating a well-funded, comprehensive, systematic exploration program that the project deserves."
Teck will invest C$600,000 in Millrock through the purchase of 1,363,636 units at $0.44, a 25% premium on the prior 20-day weighted average price (WAP) of the Company's shares. The financing is to occur within ten days of approval of the agreement by the TSX Venture Exchange. The units consist of one common share and one share purchase warrant. The warrants will be exercisable within 12 months at a price of WAP plus 50% and for an additional 12 months at WAP plus 75%. The initial share purchase will result in Teck owning approximately 2.8% of Millrock's current outstanding shares.
Millrock will advance the property in summer 2010 by conducting a comprehensive geological, geochemical and geophysical program that will be designed in consultation with TAI. Upon completion of the initial exploration program, TAI can earn an initial 55% interest in the property by incurring US$3.6 million in expenditures over two years ("First Option"). TAI can then earn an additional 10% interest by sole funding an additional US$5 million in optional Expenditures on the Property and making optional cash payments to Millrock totaling US$400,000 prior to the end of 2014 ("Second Option").
The Estelle property, located 160 km northwest of Anchorage Alaska, was purchased by Millrock in 2009 from Hidefield Gold plc., (HIF - AIM), and Mines Trust Co. a privately held Alaska-based company. Presently, Millrock owns a 100% interest in the property which is subject to a 3.0% royalty. Consisting of 214 claims covering 13,157 hectares, the property is adjacent to Kiska Metals' Whistler copper-gold deposit, with a resource totaling over five million ounces of gold equivalent (Indicated resource: 30 million tonnes grading 0.87 g/t gold, 2.46 g/t silver and 0.24% copper [1.31Moz Gold Equivalent] and an 134 million tonnes grading 0.64 g/t gold, 2.18 g/t silver and 0.20% copper [4.44Moz Gold Equivalent], as reported on Kiska's website). Estelle is in the Kahiltna Terrane, an assemblage of rocks that hosts Northern Dynasty/Anglo American's giant Pebble copper-gold-molybdenum-silver deposit, with a resource totaling 107.4 million ounces of gold, 80.6 billion pounds of copper and 5.6 billion pounds of molybdenum (Measured & Indicated 5.942 billion tonnes at 0.42% copper, and 0.35 g/t gold and 250 ppb molybdenum using a 0.3% cutoff plus 4.835 billion tonnes at 0.24% copper and 0.26 g/t Au and 215 ppb molybdenum using a 0.3% cutoff, as reported on Northern Dynasty's website).
Work by Millrock at Estelle has identified high-grade gold veins spanning the property which measures approximately 5 km by 20 km. These gold-bearing veins are significant targets, but at the Shoeshine and Oxide Ridge prospects the veins are spatially associated with porphyritic intrusive rocks, quartz stockworks and hydrothermal breccias. These features, and extensive surface geochemical anomalies, indicate the potential for large, bulk minable, intrusive-related or porphyry style deposits. At Shoeshine, a zone of porphyry-style gold mineralization, made up of stockwork veining, and pervasive alteration, is partially exposed on a steep slope. Chip sampling across the exposed portion of the zone averaged 1.2 g/t over 12.1 metres. At Oxide Ridge, multiple zones of mineralization were located in bedrock. Chip sampling across one of the zones returned assay results averaging 1.0 g/t over 22.86 metres.
The agreement and financing is subject to approval of its filing by the TSX Venture Exchange.
The technical information in this news release was reviewed by Gregory Beischer, Millrock's President and CEO, a Qualified Person as defined in NI 43-101.
ABOUT MILLROCK RESOURCES INC.
Millrock is a TSX Venture Exchange listed company intent upon the discovery of large, high value mineral deposits, with a focus on Alaska gold deposits and Arizona copper-gold porphyries. The Company follows a project generator/joint venture business model that capitalizes on Millrock's knowledge and ability in two outstanding mining jurisdictions. This model shares risk by partnering with other companies that invest capital to move exploration projects toward development and production. Millrock currently has eight (8) active exploration projects in Alaska, and three (3) in Arizona. Six of the projects are the subject of joint venture agreements in which other companies are making exploration expenditures to earn an interest in Millrock's projects. Drilling is planned on at least four (4) of the Company's projects in 2010.
FOR FURTHER INFORMATION, PLEASE CONTACT
Gregory A. Beischer, President & CEO
Phone: (604) 638-3164
Toll Free: (877) 217-8978
Millrock Resources Inc.
750 World Trade Centre - 999 Canada Place
Vancouver, BC V6C 3E1
Canada
FORWARD LOOKING STATEMENTS
Some statements in this news release contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.
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