THUNDER BAY, ON, March 2 /CNW/ - Benton Resources Corp.(the "Company") is
pleased to report that, subject to regulatory approval, it has entered into an
agreement (the "Agreement") with Grandcru Resources Corporation ("Grandcru")
whereby Grandcru has the right to earn an initial 50% interest (the "Initial
Option") in the mineral claims consisting of the South Sibley Block, Block "B"
and Block "D" (collectively the "Property") in the Sibley Basin area (commonly
referred to as the Nipigon Basin). The claim blocks are located less than
100km north east of Thunder Bay, Ontario. Once Grandcru has exercised the
Initial Option, it will have an option to earn a further 10% interest in the
Property (the "Second Option").
Under the terms of the Agreement, in order to exercise the Initial
Option, Grandcru shall spend $500,000 in respect to the Property by: (i)
reimbursing Benton for the costs of staking the claims comprising the
Property; and (ii) conducting, by the first anniversary of the Agreement,
exploration work on the Property in an amount equal to $500,000 less the costs
incurred pursuant to (i) above. Provided the Initial Option is exercised,
Grandcru may exercise the Second Option by: (a) giving notice to Benton,
within 30 days of exercising the Initial Option, that Grandcru wishes to
exercise the Second Option; and (b) by spending an additional $500,000 on
exploration within 12 months of giving such notice.
Upon Grandcru having exercised the Initial Option, if Grandcru elects not
to exercise the Second Option, the parties will form a 50/50 joint venture for
the further development of the Property. Upon Grandcru exercising the Second
Option, the parties will form a joint venture for the further development of
the Property with Grandcru having a 60% interest and Benton having a 40%
About the Nipigon Basin
The Nipigon Basin is considered to have a very similar geological setting
to that of Saskatchewan's Athabasca Basin, which hosts most of the world's
highest grading uranium deposits. Excellent geological potential combined with
significant historical uranium occurrences have led geologists to view the
Nipigon Basin as highly prospective for new uranium deposits. Recent ongoing
exploration by adjacent companies has led to the discovery of very high-grade
uranium up to 27%U(3)0(8) in grabs and 2.99% U(3)O(8) over 1.5 metres in
drilling (Rampart Ventures Ltd P.R October 31, 2005). The Benton/Grandcru
Joint Venture Property is highly prospective and includes the presence of
radiometric anomalies associated with Sibley Group mid-Proterozoic sediments
that coincide with underlying structures in the metamorphosed Archean-aged
basement, a setting similar to the uranium-rich Athabasca Basin. Historical
exploration in the area has uncovered numerous showings of uranium, copper,
and iron oxide (hematite) suggesting that potential also exists for Olympic
Dam-type (IOCG) deposits. In the past few years more than 140,000 hectares has
been staked for uranium in the Nipigon basin area.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Corp., is
the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources Corp.
Stephen Stares, President
THE TSX VENTURE EXCHANGE HAS NOT REVEIWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities.
For further information:
For further information: Stephen Stares, 3290 Willard Ave, Thunder Bay,
Ontario, P7E 6J7, Phone (807) 475-7474, Fax (807) 475-7200,
www.bentonresources.ca; Investor relations: In Canada: First Canadian Capital,
Daniel Boase, Phone (416) 742-5600, Fax (416) 742-6410; In U.S.A: The Windward
Agency, Kelly Boatright, Phone (704) 588-8600