THUNDER BAY, ON, July 10 /CNW/ - Benton Resources Corp. ("Benton") is
pleased to announce that it has received $2 million on the exercise of a
warrant by Stillwater Mining Company ("SWC") in accordance with the first
anniversary requirements of the Participation Agreement (the "Agreement")
dated July 10, 2007 between Benton and SWC whereby SWC has the exclusive right
to earn up to an initial 50% interest in the Goodchild and South Goodchild
Ni-Cu-PGE projects (collectively the "Goodchild Project"). Pursuant to the
exercise of the warrant Benton issued 1,290,322 common shares to SWC at an
effective exercise price of $1.55 representing a 200% premium to the current
In accordance with the Agreement to earn an initial 50% interest in the
Goodchild Project SWC is required to complete three separate financings over
three years into Benton in the aggregate amount of $6 million ($3 million of
which must be spent on the Goodchild Project) as follows:
a) a $1.6 million private placement (of which $600,000 is to be spent on
the Goodchild Project) at an issuance price of $1.24 per share, which
was completed in July, 2007;
b) a $2 million financing (of which $1 million is required to be spent
on the Goodchild Project) pursuant to the exercise of a warrant
issued pursuant to the Agreement and having an effective exercise
price of $1.55 per share, which was completed on July 10, 2008; and
c) a $2.4 million financing (of which $1.4 million is required to be
spent on the Goodchild Project) to be completed by July 10, 2009
pursuant to a warrant issued pursuant to the Agreement, such warrant
to have an exercise price equal to a 50% premium to the trading price
of Benton's shares at the time of exercise.
Upon fulfilling the requirements to earn an initial 50% interest SWC and
Benton shall form a 50/50 joint venture (the "Joint Venture") for the further
development of the Goodchild Project subject to SWC's right to earn a further
10% interest in the Joint Venture (to 60%) by directly funding an additional
$4 million in exploration expenditures over the following two year period.
Provided it earns a 60% interest in the Joint Venture SWC will have the
right to earn a further 10% interest in the Joint Venture (to 70%) by directly
funding over the following three year period an additional $20 million in
exploration expenditures or the completion of a Feasibility Study, whichever
At Benton's sole election, following completion of the Feasibility Study,
Benton may cause SWC to arrange total project financing for placing the
Goodchild Project into commercial production by granting SWC an additional 5%
interest in the Goodchild Project (to 75%). In such case, SWC would be
reimbursed for Benton's proportionate share of the financing from 80% of
Benton's share of net revenue from the Goodchild Project with interest at the
prime rate of the Royal Bank of Canada plus 1%.
Benton is extremely pleased to have SWC as a partner as SWC continues to
support the Goodchild Project through the next phase of exploration. The
significant premium to Benton's share price that SWC is willing to pay on
exercise of its warrant reflects the potential of the Goodchild Project to
host a Ni-Cu-PGE deposit of economic proportions. Benton is currently planning
an extensive drill program to evaluate significant targets identified to date.
The Goodchild Project is located approximately 15 kilometres north of
Marathon, Ontario and is host to several nickel showings with grab samples
assaying up to 6.72% nickel (Falconbridge/Xstrata personnel). The large
ultramafic intrusion measures approximately 5 by 8 km and has numerous
untested airborne electromagnetic anomalies detected from a survey completed
almost 20 years ago. Benton will keep its shareholders updated on developments
at the Goodchild Project as exploration moves forward.
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 REVIEWED 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 Litigation Reform act of 1995.
Investors are cautioned that such forward-looking statements involve risks and
For further information:
For further information: Stephen Stares at 3290 Willard Ave, Thunder
Bay, Ont., P7E 6J7, Phone (807) 475-7474, Fax (807) 475-7200,