Thunder Bay, Ontario–(Newsfile Corp. – March 3, 2018) – Benton Resources Inc. (TSXV: BEX) (“Benton” or “the Company”) is pleased to announce that it has executed a binding letter of intent (“LOI”) with Matador Capital Pty Ltd. (“Matador”), a private Australian-based company, whereby Matador has acquired the right to acquire a 100% interest in Benton’s Providence Copper-Nickel-PGM project (the “Option”) located in the Northwest Territories within 70km from the Diavik Diamond Mine. Under the terms of the LOI, Benton has granted to Matador the exclusive right (the “Exclusivity Period”) to negotiate the terms of the transaction, enter into a definitive agreement and/or exercise the Option during the 30 day period following execution of the LOI in consideration for the payment of A$10,000 (Australian denominated currency) within 10 days of signing the LOI. The Exclusivity Period will be automatically extended for the following periods at Matador’s election provided they pay the following amounts to Benton:
For a further five (5) months by paying Benton A$90,000 within 30 days of executing the LOI;
For a further two (2) months by paying an additional A$100,000 within six (6) months of executing the LOI.
During the Exclusivity Period, Matador may at any time exercise the option to acquire a 100% interest, by paying to Benton an additional A$200,000 (the “Option Exercise Amount”) in cash or equivalent shares (of Matador or a nominee) based on a 10-day weighted average price. At a minimum, Matador must pay to Benton no less than A$300,000 in aggregate of cash and equivalent shares between the Exclusivity Period payments and the Option Exercise Amount regardless of the point in time during the Exclusivity Period the election to exercise the Option is made. In addition, to earn the 100% interest in the Option Matador (or its nominee) must complete either of the following prior to 36 months of executing the LOI;
Completing a minimum of A$1,000,000 in exploration expenditures on the project; or
Paying to Benton a further A$1,000,000; or
Issuing to Benton tradable shares of Matador (or a nominee) having a value of A$1,000,00 based on the previous 10-day weighted average price of its shares prior to issuance.
In addition, Matador will assume the underlying NSR’s on the project (0.75% in favour of Platinum Group Metals and 0.50% in favour of Arctic Star Exploration) and will grant an additional 1% NSR in favour of Benton (2.25% NSR in aggregate) of which 0.5% of Benton’s NSR can be purchased by Matador for A$1,000,000.
Stephen Stares, Company President and CEO stated “we are very pleased to not only unlock shareholder value in one of Benton’s great prospective non-core assets at Providence, but to establish a positive working relationship with the experienced exploration and development team at Matador. We look forward to seeing the Providence project move ahead with Matador’s direction”.
In addition, the Company would like to announce that it has purchased 100% interest in the Goodchild Copper-Nickel-PGM (platinum group metals) project from Alset Minerals Corp. for a cash payment of $30,000 CAD. The Goodchild Project is located 30km west of the world class Hemlo gold deposit and just 5km NE of the Marathon Copper-PGM deposit held by Sibanye-Stillwater. The property is comprised of 8 unpatented mining claims within the Cirrus Lake and Martinet Lake Area, Thunder Bay Mining Division and is adjacent to the north boundary of Canadian Orebodies’ recent gold discovery which is less than 1km to the south (see Canadian Orebodies PR dated February 20, 2018). Historical exploration on the Goodchild project has returned up to 12.6% nickel, 0.5% copper, 0.16% cobalt, 1.8gpt palladium and 0.5gpt platinum from selective grab samples.
Benton would also like to announce it has received its first year Anniversary payment of 500,000 shares from Sokoman Iron Corp. (TSXV:SIC) (“Sokomon”) for its East Alder project. Sokoman has recently completed drilling on its Clarks Brook project and is awaiting assay results (see Sokomon NR February 21, 2018). Benton currently holds 1,655,000 shares of Sokomon.
Finally, Benton will be exhibiting at the upcoming PDAC (Prospectors and Developers Association of Canada) International Convention, Trade Show & Investors Exchange from March 4 through March 7 at the Metro Toronto Convention Centre and invites any interested parties to visit us at booth #2117 to learn more about the Company.
About Benton Resources Inc. (TSXV: BEX) Benton Resources Inc is a well-funded Canadian-based junior with a diversified property portfolio in Gold-Silver, Nickel, Copper, and Platinum group elements.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Inc., is the qualified person responsible for this release has prepared, supervised the preparation or approved the scientific and technical disclosure in the news release.
On behalf of the Board of Directors of Benton Resources Inc.,
Stephen Stares, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements.”
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company’s expectations or projections