- Millrock Resources (MRO) has signed a loan agreement with Redplug Capital Corporation
- The $500,000 loan will be used for general working capital
- Millrock plans to repay the loan within the coming year by liquidation of shares that it holds in other companies, sale of royalty interests, etc
- Interest for the first six months of the loan is 6.0 per cent annually and thereafter at 12.0 per cent annually
- Millrock Resources Inc. is a premier project generator to the mining industry, which identifies, packages, and operates large-scale projects for joint venture
- Millrock Resources Inc. remained unchanged at $0.045 at 3:40 PM ET
Millrock Resources (MRO) has signed a loan agreement with Redplug Capital Corporation.
The loan, valued at $500,000, will be used for general working capital.
Millrock plans to repay the loan within the coming year by (1) liquidation of shares that it holds in other companies, (2) sale of royalty interests, and/or (3) from proceeds that may be realized on sale or purchase agreements concerning Millrock mineral exploration projects.
The term of the loan is one year. Interest for the first six months of the loan is 6.0 per cent annually and thereafter at 12.0 per cent annually.
Additionally, Millrock will pay the Redplug Capital Corporation 2,000,000 bonus shares of the company upon acceptance of the TSX Venture Exchange.
“Millrock has found itself in a tight financial position at a time when market conditions limit our ability to raise further operating funds,” said Millrock President & CEO, Gregory Beischer.
“In any event, an equity financing at the current share price would be highly dilutive to existing shareholders,” he added.
Millrock believes that there are many catalysts that have potential to drive the company’s share price higher.
It notes that more than 18,000 metres of drilling has been planned and budgeted at several projects in which Millrock has an interest, and all the funds for these drilling programs come from partner companies.
Millrock Resources Inc. is a premier project generator to the mining industry, which identifies, packages, and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies.
Millrock Resources Inc. remained unchanged at $0.045 at 3:40 PM ET.