FIELDWORK COMMENCES AND AIRBORNE SURVEY UNDERWAY ON JAMES BAY LOWLANDS
TSX VENTURE SYMBOL "MC"
CALGARY, Jan. 28 /CNW/ - MILL CITY GOLD CORP. ("Mill City" and/or the
"Company") is pleased to announce that a total of 5,035,000 warrants were
exercised at a price of $0.20 per share from a previous private placement
completed in January 2006. All unexercised warrants expired January 21, 2008.
Proceeds from the warrants will be applied to the exploration expenditure
commitment with Temex Resources Corp. ("Temex") pursuant to a binding letter
of intent entered into with Temex as previously announced on December 12,
Mill City has the right to acquire a 50% interest in 64 staked mining
claims (the "Claims") totaling 1012 mining claim units (16,192 ha) in the
general area of the Noront Resources Ltd. ("Noront") recent Nickel-Copper PGE
discovery. The Claims, which are located in the Sachigo Greenstone Belt in the
James Bay Lowlands region of Northern Ontario, are in two areas, one which
includes approximately two thirds of the Claims north of the Noront Double
Eagle discovery. These northern claims are subject to a 2% NSR royalty payable
as 1% NSR to each of Noront and Baltic Resources Inc. The other claim blocks
were recently acquired by Temex (100%) and are located to the southwest of the
The claims cover features thought to be geological environments similar
to the geological environment near the Noront Ni-Cu-PGE discovery. It is
believed that these recently acquired Claims have never been subjected to any
previous exploration for Ni-Cu-PGE mineralization, and for the most part, the
Claims have not been covered by a modern magnetic and electromagnetic
geophysical survey. The initial exploration program will consist of a
combination of airborne and ground geophysical surveying followed shortly
thereafter by diamond drilling of priority targets.
In order to earn its 50% interest in the Claims, Mill City shall, upon
execution of a definitive Option and Joint Venture Agreement, make a cash
payment of $300,000, issue to Temex 250,000 common shares of Mill City and
complete an aggregate of $2,500,000 of exploration expenditures over a 3-year
period. Mill City must also issue 250,000 shares on the first anniversary of
Mill City and Temex are in the process of finalizing the definitive
Option and Joint Venture Agreement. Fieldwork has commenced and the airborne
survey is underway.
ON BEHALF OF THE BOARD OF DIRECTORS
"James R. Brown"
James R. Brown
Chairman, President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this Release.
For further information:
For further information: James R. Brown at (403) 640-0110 or visit the
Company's website at www.millcitygold.com