Mining News: News Nuggets: Millrock cuts deal for Pogo area assets
Millrock Resources Inc. July 29 reported that it has struck a deal with Corvus Gold Inc. to purchase Raven Gold Alaska LLC’s assets located in or pertaining to the Goodpaster Mining District of Interior Alaska. As part of the agreement, Millrock has purchased the West Pogo gold property from the Corvus subsidiary. The West Pogo claims cover the projection of a favorable structure that passes through Sumitomo Metal Mining Co.’s Pogo Mine., located about two miles to the east. Millrock paid US$20,000 for a 100 percent interest in West Pogo, with Raven retaining a royalty of 3 percent net smelter return royalty on precious metals and 1 percent NSR on base metals. Millrock may reduce the precious metals royalty to 1 percent by making payments totaling US$7 million. Per the terms of a collaboration agreement signed with an unnamed major mining company earlier in 2015, Millrock will offer the major the opportunity to assign West Pogo to “designated project” status, subject to an option agreement with pre-determined terms. With funding from its strategic partner, Millrock also has purchased an extensive, proprietary database of geological information from Raven. The database was created through more than US$5 million of exploration completed by Anglogold-Ashanti and International Tower Hill Mines in the 1990s and early 2000s and contains information from throughout Alaska’s Goodpaster Mining District and the Pogo Mine area. Included in the information are geochemical results for thousands of stream sediment, soil, rock and vegetation samples, airborne geophysical surveys, structural and remote sensing analyses and project generation reports. The purchase price for the database is US$100,000. A royalty of 1 percent NSR in favor of Raven will be payable for any claims staked by Millrock within a defined area of interest in the next five years. The royalty may be reduced to 0.5 percent by payment of US$2 million. Corvus also has granted Millrock a right of first refusal to acquire the LMS project, another venture in the Pogo area, under agreed upon terms until Sept. 1. Millrock Chief Exploration Officer Philip St. George said, “With the acquisition of the Anglogold-Ashanti database, our company will have the most comprehensive store of geological knowledge on this district. We will have a distinct competitive advantage for generating new grassroots exploration targets for high-grade gold deposits with our strategic partner.”
- Shane Lasley
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