Get the Latest Investment Ideas Delivered Straight to Your Inbox.

TICKERS: EMX, MRO; MLRKF

Miner Seeks to Advance Exploration on Alaskan Prospect
Contributed Opinion

Source:

Maurice Jackson In this interview with Maurice Jackson of Proven and Probable, the president and CEO of a project generator working in the Goodpaster District of Alaska explains the rationale behind putting the company's stock on sale.

Maurice Jackson: Joining us today for a conversation is Gregory Beischer of Millrock Resources Inc. (MRO:TSX.V; MLRKF:OTCQX). Mr Beischer, welcome.

Gregory Beischer: Hi Maurice, always good to be here.

Maurice Jackson: Always a pleasure to have you on the program, sir. As a reminder for our audience, in our last interview, we addressed claim staking Millrock Resources was conducting in the Goodpaster District of Alaska, which is becoming one of the most highly contested mining districts in the world.

Mr. Beischer, before we delve into today's interview, please introduce us to Millrock Resources, a premiere project generator, and share the investment opportunity that the company presents to the market.

Gregory B.: We are a project generator/exploration company, so we develop early-stage exploration projects, but always, always find partners to share the natural risk that's in early-stage exploration. That way we're able to operate multiple projects at one time, and increase our chances of successfully finding an ore body that will greatly benefit Millrock shareholders.

The latest project that we've come up with is called the Goodpaster Project.

Maurice Jackson: We referenced the Goodpaster District of Alaska. Please provide us with some background on the district, and share with us where Millrock has been strategically positioning itself in the district.

Gregory B.: Maurice, you and I have had several conversations about the Goodpaster District of Alaska. Right now, the best known and single mine in the Goodpaster District is the Pogo Gold Mine, and it's a great mine. It produces several hundred thousand ounces of gold every year, and the concentration, or the grade of gold, is excellent. It's close to half an ounce of gold for every ton that's been mined, and the same going forward.

There's a new owner, Northern Star Resources Ltd. (NST:ASX), an Australian company that seems to be making great changes to improve the profitability of the mine and, most importantly from our standpoint, made new exploration discoveries, one of which seems to be very, very close to the mutual claim boundary between Northern Star and Millrock.

But we've staked a gigantic tract of claims, covering in excess of 660 square kilometers, over 255 square miles. So it's a major piece of land that we've acquired. I'll tell you, it's not just moose pasture. We have a great database of information that we purchased with some claimed blocks years ago, and that's paying off in spades, now.

Maurice Jackson: What are the latest developments from Millrock in the Goodpaster District?

Gregory B.: Well, we've been advancing the project and talking to potential partners that would fund exploration. But at the same time, we're so keen on the West Pogo portion of this overall claim block—the part that's immediately to the west of the Pogo mine—that we believe we should advance that project, or that block of claims—that prospect—a little bit further before we make an agreement with another company. It could be that there's an ore body coming from the Northern Star ground right onto our claim block. We don't want to give this one away prematurely, or too early, or too low on price. So, to improve the value, we're going to put a little bit more of our own treasury in it. The thing is, we're going to have to raise money to do that work.

Maurice Jackson: Mr. Beischer, when the thesis makes sense and the price is low, that's called a sale. What would you like to tell shareholders regarding the opportunity that is before us right now?

Gregory B.: Well, Millrock stock is on sale. I mean, it's painful to sell stock at this price when I know the company should be worth more. But I kind of feel like it's the way things were back in early 2009. There was a really sharp downturn in 2008, and the Millrock share price got all the way down to $0.05–$0.07. There were people that invested at that time, that believed in us. Within 12 to 14 months, our shares were trading at $0.80 or $0.90. Of course, the market was very helpful. The price of gold was going up, everything was suddenly great again in 2009. Those folks that invested in our company in early 2009, if they had sold in 2010 or 2011, made some really good profits. I think our share price exceeded $1, at one point. So those that had invested at a nickel did pretty darn well.

It's sort of a similar, parallel situation now, except that I think Millrock is a much, much stronger company. We've got more experience. We've got a great team of people and we've got just a fantastic portfolio of gold projects.

Maurice Jackson: Millrock just announced that it will be raising capital through financing (press release). Please share the terms with us.

Gregory B.: The units will be sold at $0.075 each. A unit consists of one full share of Millrock and a warrant to purchase stock in Millrock in the future, at a certain specified price. That price will be $0.14 for the remainder of this year, $0.17 for the next year and $0.20 cents for the year after that. So it's a pretty darn good deal for the investors. That warrant entices the capital to come to the company. That's why we offer that, but I think it's a great deal.

Maurice Jackson: Speaking of a deal, let's compare that with what just occurred in April with EMX Royalty Corp. (EMX:TSX.V; EMX:NYSE.American). Back in April, Millrock Resources formed a strategic alliance with some prudent capital, and that would be EMX Royalty, as they've demonstrated confidence in Millrock's potential in the Goodpaster District. Please share the terms with us.

Gregory B.: Sure. I know that you know EMX Royalty pretty well, Maurice, and so do we. We admire that team and the great success that they've had, and we hope to emulate that success. They're a pretty darn good technical team and smart business people. I know you're actually a shareholder of EMX, as am I, personally.

EMX invested in Millrock. They made a strategic investment. We came to them with the idea for the Goodpaster Project, but we needed capital to execute on the staking of the giant claim block. They provided that capital. In fact, they provided that capital at a premium to the market price of Millrock, at $0.14 a share. But there was a catch, and that was that we had to grant to EMX a modest royalty. It's not a big one, but it's enough that it enticed them to pay the extra price for Millrock.

It was, I believe, a win-win for our two companies. If there's an ore body on the claims that we've staked, EMX and its shareholders will benefit, in addition to the great benefits that Millrock shareholders would get.

Maurice Jackson: For the record, we participated in the last two financings with Millrock Resources, and we're going to make it a third, as we will be participating in full confidence in this round of financing with Millrock.

Before we close, on a personal note, Mr. Beischer, a number of shareholders have been inquiring about Melanie Henderson, a valued member of the Millrock team who's been undergoing some health concerns. Can you provide us with an update, sir?

Gregory B.: Well, yes. Melanie did have surgery several weeks ago now. It was quite serious surgery, but I heard from her yesterday that she's getting stronger and stronger every day, and it looks like she's going to have one of the best possible outcomes that could be hoped for. So, it might still be a little while before she's back in action, but we're all cheering for her, and we're all looking forward to seeing her bright, smiling face again.

Maurice, let me say, I personally really appreciate your continued confidence in Millrock, that you'll be investing yet again. I know that some of your followers might also like to participate in such a financing. If they're an accredited investor, we would be glad to allocate a certain part of the financing to your followers. You're welcome to pass on my e-mail information, so that they can contact me, if you like.

Maurice Jackson: We will certainly do that, sir. For our audience members, the e-mail address is [email protected] In the subject line, simply put in Millrock Resources.

And I just want to go back to Ms. Henderson—Melanie, that was some welcome news that Mr. Beischer just shared with us, and on behalf of all of us, we wish you a speedy recovery and you're in our hearts and prayers.

Mr. Beischer, for someone listening that wants to get more information on Millrock Resources, please share the contact details.

Gregory B.: Sure. It's www.millrockresources.com.

Maurice Jackson: Millrock Resources is a sponsor of Proven and Probable, and we are proud shareholders for the virtues conveyed in today's message.

As a reminder, I'm a licensed representative for Miles Franklin Precious Metals Investments, where we provide a number of options to expand your precious metals portfolio from physical delivery, offshore depositories, precious metal IRAs, and private blockchain distributed ledger technology. Call me directly at (855) 505-1900 or you may email [email protected].

Finally, we invite you to visit provenandprobable.com, where we provide mining insights, and bullion sales. Gregory Beischer of Millrock Resources, thank you for joining us today on Proven and Probable.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

[NLINSERT]

Disclosure:
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Millrock Resources and EMX Royalty. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Millrock Resources and EMX Royalty. Proven and Probable disclosures are listed below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Millrock Resources and EMX Royalty, companies mentioned in this article.

Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

Images provided by the author.




Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe