Millrock Resources Inc. has entered into a private placement agreement with Altius Minerals Corp., a natural resource project generation and royalty business based in Newfoundland and Labrador, to initially fund a strategic alliance for exploration of five areas in Alaska.
This private placement, which will give Altius about an 11 percent interest in Millrock, will raise C$930,000 from the sale of 4,227,273 Millrock units at a price of C22 cents per unit. The price represents a 33 percent premium over Millrock’s 20 day trading average. Each unit is comprised of one Millrock common share and one share purchase warrant. Each warrant will entitle the holder to purchase one Millrock common share at a price of C30 cents for the first year after the closing of the private placement and C40 cents during the second year.
This private placement agreement comes less than a week after Millrock’s June 5 announcement that it had closed a C$350,000 private placement with Kinross Gold Corp. The gold major has the right to purchase 292,014 units at a price of C22 cents per unit to maintain its 6.46 percent interest in the junior. The Atlius private placement will increase to about C$994,243 if Kinross fully exercises its anti-dilution rights.
Millrock said the funds from the private placement and any warrant exercises and participation in future financings by Altius will be used to fund a strategic alliance in five specific areas of interest in Alaska. Millrock will use alliance funds to research each area of interest and propose an exploration plan for acceptance by Altius. Millrock will explore the areas of interest for new prospects, and stake claims on the prospects that Altius names as a “designated project”.
Millrock said the goal is to attract other companies to fund exploration in order to earn an interest in the designated projects.
