Millrock Resources Inc. (TSX-V: MRO, OTCQX: MLRKF) (“Millrock”) is pleased to report that it has executed a definitive agreement for a transaction in which its three exploration projects in the Golden Triangle District of British Columbia – Oweegee Dome, Willoughby and Todd Creek – have been sold to Sojourn Exploration Inc. (“Sojourn”, TSX-V: SOJ). The agreement to sell the properties was previously announced here when Millrock entered into a Letter of Intent to complete the transaction in February of this year.
The existing option agreements with Sojourn concerning Millrock’s Oweegee Dome and Willoughby projects have been terminated. Sojourn has announced a financing of $2.5 million, concurrent with the closing of the transaction. Millrock presently owns 1,800,000 Sojourn common shares and will be issued 7,823,417 additional common shares of Sojourn for a total of 9,623,417 Sojourn common shares. The shares will be held for 12 months under a voluntary pooling agreement. Upon closing of the financing, if $2.5 million is raised, Millrock will be a 19.9% owner of Sojourn (inclusive of the Sojourn shares issued to SDE for the acquisition mentioned below). Millrock will retain a royalty on the properties and receive reimbursement of $250,000 from Sojourn for exploration costs incurred in 2017.
As part of the transaction, Sojourn also purchased four other British Columbia projects from a private company Seven Devils Exploration Ltd. (“SDE”) for shares. The SDE team will take over executive and technical management of Sojourn.
Millrock President & CEO Gregory Beischer commented: “Sojourn will have a new management team that has outstanding depth in British Columbia metallogeny. We anticipate the newly constituted company will have great success following the Project Generator business model and make great discoveries that will, in turn, benefit Millrock shareholders.”
The SDE properties give Sojourn (and therefore Millrock) exposure to three of British Columbia’s most productive belts for porphyry copper-gold exploration, the Toodoggone District (Oxide Peak project), the northern Quesnel Trough (Eagle project), and the Late Cretaceous Bulkley intrusions of the Skeena Arch (Rip project), as well as a newly discovered Miocene porphyry belt in Northern Vancouver Island (Teeta Creek project). Along with the Golden Triangle projects that Millrock has contributed, Sojourn will have a strong property portfolio with which to begin its Project Generator mineral exploration business.
The agreement will require the approval of the TSX Venture Exchange, and consent of some underlying claim owners. Gregory A. Beischer, President, CEO and a director of Millrock Resources, is also a director of Sojourn.