Millrock Resources (TSX-V: MRO) Vends Violeta to Riverside Resources, Has Uranium Project in New Mexico
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me once again is President and CEO of Millrock Resources (TSX-V: MRO)(OTC: MLRKF) , Mr. Greg Beischer. Greg, thank you for joining me this evening.
Greg Beischer: Hi, Gerardo, always a pleasure.
Gerardo Del Real: Well, I wanted to have you on. You had some news today that I thought was worth while. The headline reads, “Millrock Sells Violeta Concession in Sonora, Mexico.” That's a transaction with Riverside Resources (TSX-V: RRI). Could you touch a little bit on the details there?
Greg Beischer: Yeah, sure. Violeta's a small concession, though strategically located very well. It's one that we purchased when we purchased quite a number of concessions from Pembrook Mining two years ago. It's adjacent to a larger block of claims called Cecilia – owned by a different company – that has some quite interesting gold occurrences on it. Millrock had been thinking of consolidating land in this area and then finding a funding partner, but we found the cost of the adjacent claims a little more than we were prepared to pay. In the meantime, Riverside it appears had a very similar idea, so they were consolidating land and we figured, well, we'll just pitch our Violeta project in with them, give them a reasonable deal. Millrock shareholders have upside form the fact that Millrock now owns Riverside shares and a modest royalty in the event that in fact gold production does occur on our concession. It's a good little agreement. We've created a royalty. We've created some upside and everybody's happy. We're happy to cooperate with a fellow project generator like Riverside, good company.
Gerardo Del Real: Absolutely. Now, it's always great to start the year executing on that project generator model. I know you were recently in Vancouver for the Roundup Conference. Can you just generally speaking, can you talk to me a little bit about what the energy was like, what the mood was like? Were there a lot of meetings? Were there a lot of discussions? Was it quieter? You've obviously been active behind the scenes for the past few years where the markets weren't as favorable. We've gotten off to a pretty decent start in the precious metals market. Copper prices are up. What was the mood like there, Greg?
Greg Beischer: You know, Gerardo, we attended and participated in three different conferences, first, the Metals Investor Forum that was put on by newsletter writers, Eric Coff and Brien Lundin, Scott Gibson, Gwen Preston, and Jay Taylor, a great little event, probably 30 up-and-coming companies that we’re happened to be accounted amongst. Then the Cambridge Investor Show, and then finally the Cordilleran Roundup Technical Conference. From one to the other, the mood clearly has improved. It's upbeat. Investors are looking for opportunities. They're seeing them. They're investing, and like me, I think share enthusiasm and optimism for the coming year and beyond. Metal prices are rising a little. It's great to see gold moving up. I think if it gets a little higher then it may take a big jump. That then I think will mean big influxes of venture capital.
For me as an early stage explorer, it was great to see some junior companies being financed for early stage projects. You know, last year we saw lots of financings, but it was more further up the food chain I would say, development projects, companies who had deposits that were looking to expand them or near term production stories were financed, but not the early stage explorers. You know, Millrock did well through that because we stick so rigorously to our joint vencher model, unlike pure exploration companies that sell stock to drill holes, but it's great to see them getting funded again too. You know, we'll partner with some of those because we've accumulated a great portfolio and if we can vend out some of our projects taking share positions in up and coming juniors with good management, good technical teams, then we're happy to do that.
A lot of our financing over the years has come from major mining companies and during our time in Vancouver, we met with many of our existing and hopefully future major company joint venture partners. It looks like their budgets are easing up and funding more available and they're on the hunt for projects. As you know, Millrock was very aggressive over the last two years building out its property portfolio. I'm almost certain at this point that that move is really going to pay off.
Gerardo Del Real: I agree 100% Greg. You were very opportunistic during this latest bear market and obviously you were able to make deals for properties that I believe in this new market you're going to be richly rewarded for. Can you provide a little bit of context to people that maybe aren't familiar with the Millrock story about where you're looking to be active here in 2017?
Greg Beischer: Sure thing. Home base for us is Alaska. Now we're looking forward to a great field season in the summer of course to execute excellent exploration programs. We have to start preparing now and that work is under way. Same is true for our projects in British Columbia, in the Stewart Golden Triangle. I'm fairly certain that we're going to have funding for those projects. Again, they're summer projects. They're in high mountain country and a relatively short field season, but it takes a while to prepare for those, so we're under way on that. In the meantime, we're running flat out in Sonora, Mexico, really just a fantastic arrangement we have with Centerra Gold. They've taken on two of our projects, formed a strategic alliance, and there's more to come with Centerra and with others. Sonora is becoming a really active jurisdiction for us.
On the one final area that we're active in, New Mexico, and I wouldn't say we're active, but we do own a uranium deposit in New Mexico that we jumped on a few years ago when it became open and available for staking. We just happened to see this and jumped on it. It turns out maybe we're a few, couple years early, but there's definitely signs of life in uranium stocks and I'm pretty hopeful that we're going to find a partner to fund work on that New Mexico uranium prospect.
You've seen it before, I've seen it, when the uranium markets get moving a great deal of money can be made. We're looking forward to that. You know, spread across, diversified across four different jurisdictions so that we're almost always exploring and drilling somewhere and always have the opportunity to make that big discovery that will reward our shareholders that have stuck through us over the years.
Gerardo Del Real: Well, I know you always keep busy, Greg. I understand you're headed down to Sonora, Mexico here within the next week. I know you recently announced the strategic alliance with Centerra. Hopefully as news develops and those projects are advanced, you can come back on and share the details with us.
Greg Beischer: Yep, there's going to be a pretty steady news flow from here on out, Gerardo. It looks like new incoming funding partnerships, exploration results. Should be good.
Gerardo Del Real: Fantastic. Well, Greg, I want to thank you very much for your time today. Again, hopefully we can have you back on soon. Thanks again.
Greg Beischer: I look forward to it, Gerardo. Talk to you again.