Millrock announces loan agreement
VANCOUVER, British Columbia, June 21, 2022 (GLOBE NEWSWIRE) — Millrock Resources Inc. (TSX-V: MRO, OTCQB: MLRKF) (“Millrock” or the “Company”) announces that it has entered into a loan agreement with Redplug Capital Corporation. The loan is for $500,000 and will be used for general working capital. Millrock intends to repay the loan within the next year by 1) liquidating shares it holds in other companies, 2) selling royalty interests and/or 3) proceeds that may be realized on sale or purchase agreements relating to Millrock’s mineral exploration projects. The term of the loan is one year. Interest for the first six months of the loan is 6.0% per annum and then 12.0% per annum. In addition, Millrock will pay Redplug Capital Corporation 2,000,000 free shares of the Company upon acceptance on the TSX Venture Exchange.
Millrock Chairman and CEO Gregory Beischer said:Millrock has found itself in a difficult financial position at a time when market conditions are limiting our ability to raise additional operating funds. In any event, equity financing at the current share price would be highly dilutive for existing shareholders. At the same time, Millrock has many catalysts that could drive the Company’s share price higher. More than 18,000 meters of drilling have been planned and budgeted on several projects in which Millrock has an interest. All funds for these drilling programs come from corporate partners. Additionally, Millrock is entering into option agreements on other projects that could provide more cash to the company’s treasury. Shareholders who have invested in Millrock over the past few years are looking forward to the big drilling year underway in 2022. Millrock has determined that it is best not to suffer excessive dilution through equity financing at this particular stage. The less dilutive lending operation will allow operations to continue in the short term. Potential asset sales will cover longer-term needs as results from ongoing drilling programs unfold. We hope that the results of the drilling programs will allow for equity financing on more favorable and less dilutive terms later in 2022. We believe that all drilling programs have a good chance of making gold discoveries.
The scientific and technical information disclosed in this document has been prepared, reviewed and approved by Gregory A. Beischer, President, Chief Executive Officer and Director of Millrock Resources. Mr. Beischer is a qualified person within the meaning of NI 43-101.
About Millrock Resources Inc.
Millrock Resources Inc. is a leading project generator for the mining industry. Millrock identifies, packages and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken by most exploration companies. The company is recognized as the first generative explorer in Alaska, holds royalty interests in British Columbia, Canada, and the state of Sonora, Mexico, is a major shareholder in junior explorer ArcWest Exploration Inc. and holds a significant interest in each of Resolution Minerals Limited and Felix Gold Limited. Drilling funding for Millrock’s exploration projects is primarily provided by its joint venture partners. Millrock business partners include some of the biggest names in the mining industry: EMX Royalty, Coeur Explorations, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet and Altius, as well as young explorers Resolution, Riverside, PolarX , Felix Gold and Tocvan.
ON BEHALF OF COUNCIL
Gregory Beischer, President and CEO
Certain statements contained in this press release may contain forward-looking information (within the meaning of Canadian securities laws) including, without limitation, the intention of the partner companies to complete any planned drilling they have indicated, the sale of Millrock’s assets, that Millrock has numerous catalysts which have the potential to drive up the Company’s share price, that Millrock is entering into option agreements on other projects which could bring more liquidity to the Company’s treasury, that potential asset sales will cover longer-term needs, that all drilling programs have a good chance of making gold discoveries and the possibility of an increase in the price of action upon receipt of future drilling results. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from results, future performance or achievement expressed or implied by the statements. . These factors include, but are not limited to, customary resource industry risks and the risk factors identified in Millrock’s MD&A for the three-month period ended March 31, 2022, which is available under of Millrock on SEDAR at www.sedar.com. Forward-looking statements speak only as of the date such statements are made. Except as required by applicable law, Millrock undertakes no obligation to update or publicly announce the results of any changes to any forward-looking statements contained or incorporated by reference herein to reflect actual results, events or future developments, changes in assumptions or changes in other factors affecting the forward-looking statements. If Millrock updates any forward-looking statements, no inference should be drawn that it will make additional updates with respect to such or other forward-looking statements.