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Rockhaven Resources
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Rockhaven Resources
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Rockhaven Resources Ltd. Options out Mount Hinton Property to Mill City Gold Corp.
April 12, 2011 - Rockhaven Resources Ltd. (TSX-V:RK) (“Rockhaven”) announces that it has entered into an option agreement with Mill City Gold Corp. (TSX-V:MC) (“Mill City”), under which Mill City has been granted the right to acquire a 100% interest in the Mount Hinton property. The property is located in the Keno Hill mining camp in central Yukon Territory and hosts gold-silver-lead mineralization within steeply dipping vein structures.
Under the terms of the agreement, Mill City can exercise the option by: (i) paying Rockhaven a cash payment of $200,000 and issuing to Rockhaven that number of Mill City shares equal to 19.9% of issued Mill City common shares immediately upon regulatory approval; and (ii) making staged cash payments totalling $4.96 million by December 31, 2014, half of which can be paid by the issuance of Mill City shares. The option agreement is subject to the approval of the TSX Venture Exchange.
Rockhaven has retained a 2% net smelter return royalty in any commercial production of precious and base metals from the property. During the option exercise period, Rockhaven will also have the optional right to maintain its 19.9% shareholding by participating in Mill City equity financings.
Rockhaven currently holds its interest in the Mount Hinton property under option from an arm’s length exploration syndicate (see Rockhaven news release dated March 8, 2010). In order to exercise its option to acquire a 100% interest in the property, Rockhaven is required to make a final cash payment of $166,000 to the syndicate by March 1, 2012. In a private transaction completed in February of 2011, Rockhaven purchased an underlying third-party royalty interest. Other than Rockhaven’s 2% royalty disclosed above, the property is royalty free.
The Mount Hinton property is situated within the eastern part of the Keno Hill mining camp, a district that hosts more than 35 individual mines and is historically Canada’s second largest primary silver producer. Although silver mineralization is found in veins on the Mount Hinton property, gold is the most significant component in many of the 72 bedrock showings and float occurrences that have been discovered on the property by previous operators. Creeks draining the property have yielded significant placer gold production and are still being mined.
The technical information in this news release has been reviewed by Robert C. Carne, M.Sc., P.Geo., a qualified person for the purpose of National Instrument 43-101.
For additional information concerning Rockhaven Resources Ltd. or its Klaza gold-silver project please visit the Company’s website at www.rockhavenresources.com or contact:
Matthew Turner, CEO
Rockhaven Resources Ltd.
T: 604-688-2568
mturner@nordacres.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE: This news release includes certain “forward-looking statements”. Other than statements of historical fact, all statements included in this release, including, without limitation, statements regarding future plans and objectives of Rockhaven are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those expected by Rockhaven are those risks described herein and from time to time, in the filings made by Rockhaven with Canadian securities regulators. Those filings can be found on the Internet athttp://www.sedar.com.
Under the terms of the agreement, Mill City can exercise the option by: (i) paying Rockhaven a cash payment of $200,000 and issuing to Rockhaven that number of Mill City shares equal to 19.9% of issued Mill City common shares immediately upon regulatory approval; and (ii) making staged cash payments totalling $4.96 million by December 31, 2014, half of which can be paid by the issuance of Mill City shares. The option agreement is subject to the approval of the TSX Venture Exchange.
Rockhaven has retained a 2% net smelter return royalty in any commercial production of precious and base metals from the property. During the option exercise period, Rockhaven will also have the optional right to maintain its 19.9% shareholding by participating in Mill City equity financings.
Rockhaven currently holds its interest in the Mount Hinton property under option from an arm’s length exploration syndicate (see Rockhaven news release dated March 8, 2010). In order to exercise its option to acquire a 100% interest in the property, Rockhaven is required to make a final cash payment of $166,000 to the syndicate by March 1, 2012. In a private transaction completed in February of 2011, Rockhaven purchased an underlying third-party royalty interest. Other than Rockhaven’s 2% royalty disclosed above, the property is royalty free.
The Mount Hinton property is situated within the eastern part of the Keno Hill mining camp, a district that hosts more than 35 individual mines and is historically Canada’s second largest primary silver producer. Although silver mineralization is found in veins on the Mount Hinton property, gold is the most significant component in many of the 72 bedrock showings and float occurrences that have been discovered on the property by previous operators. Creeks draining the property have yielded significant placer gold production and are still being mined.
The technical information in this news release has been reviewed by Robert C. Carne, M.Sc., P.Geo., a qualified person for the purpose of National Instrument 43-101.
For additional information concerning Rockhaven Resources Ltd. or its Klaza gold-silver project please visit the Company’s website at www.rockhavenresources.com or contact:
Matthew Turner, CEO
Rockhaven Resources Ltd.
T: 604-688-2568
mturner@nordacres.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE: This news release includes certain “forward-looking statements”. Other than statements of historical fact, all statements included in this release, including, without limitation, statements regarding future plans and objectives of Rockhaven are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those expected by Rockhaven are those risks described herein and from time to time, in the filings made by Rockhaven with Canadian securities regulators. Those filings can be found on the Internet athttp://www.sedar.com.