THUNDER BAY, ON, Jan. 26 /CNW/ - Benton Resources Corp. ("Benton" or the
"Company") is pleased to announce that it has closed its previously announced
non-brokered private placement in Coro Mining Corp. ("Coro") by acquiring
27,272,727 units of Coro at a price of $0.11 per unit for a total investment
of CAD$3,000,000, each unit consisting of one common share and one common
share purchase warrant (the "Warrants") of Coro. Each Warrant entitles Benton
to purchase one common share of Coro for a period of two years at a price of
$0.18 for the first year from the date of closing and at a price of $0.20
thereafter until the expiry date. The Warrants are subject to a forced
exercise provision which provides that Benton will exercise the Warrants if:
(i) the trading price of Coro's shares on the TSX trade at a price equal to or
greater than $0.50 for a period of 10 consecutive trading days; (ii) Coro has
received approval for its Environmental Impact Study at its San Jorge project;
and (iii) at the time of such exercise of Warrants, Coro completes a
concurrent equity financing at a price of not less than the gross proceeds of
the Warrants being exercised. Any Warrants not exercised pursuant to the
forced exercise provision will expire at the end of the 10 days. Benton's
investment, which was made from cash on hand, is part of a private placement
of Coro of $4.5 million on the same terms with the remaining $1.5 million
subscribed for by unrelated parties and which is to close at a later date.
Upon closing of the $4.5 million financing Benton will own approximately 34%
of the issued shares of Coro prior to Benton exercising any of the Warrants.
Coro is a Latin America focused exploration and development company whose
principal asset is the San Jorge copper gold project, located in the Province
of Mendoza, Argentina. In April 2008, Coro announced the conclusions of an
independent Preliminary Economic Assessment ("PEA"), for a Float Only project
at San Jorge which contemplates the production of an average of 39,500 metric
tonnes (approximately 90,000,000 lbs) per year of copper and 39,000 oz per
year of gold contained in concentrate for a period of 16 years. The Float Only
project has NI 43-101 compliant Measured and Indicated Resources of 152
million tonnes at 0.48%CuT and 0.20g/t Au containing approximately 719,000
tonnes (1,584 million lbs) of copper and 984,000 ounces of gold. It also has
Inferred Resources of 11 million tonnes at 0.38%CuT and 0.16g/t Au containing
approximately 43,000 tonnes (95 million lbs) of copper and 57,000 ounces of
gold. At a copper price of US$1.65/lb and a gold price of US$600/oz, the PEA
concluded that the project has an after tax NPV 10 of US$82 million with an
IRR of 17.7%. At US$2.00/lb copper and US$600/oz gold, the NPV 10 increases to
US$220 million with an IRR of 28.6%. Note: for the purposes of the PEA mineral
resources that are not mineral reserves do not have demonstrated economic
In October 2008, Coro announced that an Environmental Impact Study
("EIS") for San Jorge had been formally accepted to enter the evaluation
process by the Secretary of the Environment of the Government of Mendoza.
The potential to increase resources at San Jorge is considered good. The
drilling to date was completed to outline a near surface oxide resource and as
such many of the drill holes are terminated in copper sulphide mineralization.
A geotechnical drill hole completed near the southwest margin of the proposed
pit intersected mineralized rock. Assays have not been received for the core
which is currently outside the 2008 pit wall design. Alteration,
mineralization, and structural vectors indicate the deposit may be open to the
northeast as well.
The presences of two other alteration areas of equal size to the San
Jorge deposit has been identified but have seen no exploration to date.
Coro also has a portfolio of properties in Chile, including the scoping
stage Barreal Seco copper project, the Andrea and Chacay porphyry copper
prospects, and an exploration agreement with Freeport-McMoran Exploration
Corp. for its Talca Belt reconnaissance stage copper prospects.
Barreal Seco is an IOCG-type deposit with a NI 43-101 compliant resource
of approximately 92.2 million tonnes grading 0.53% copper in the measured and
indicated categories between the oxide, mixed, and sulphide material. The
Andrea property is an early stage exploration play for porphyry-hosted
copper-gold mineralization. Highlights of the limited historic shallow diamond
drilling produced mineralization grading 1.24g/t gold with 0.81% copper over
49 metres and 1.16g/t gold with 0.92% copper over 31 metres. The potential to
define a deposit of economic significance at Andrea is considered good given
the extensive alteration in the porphyry body and the mineralized drill
intersections to date. Chacay is an early stage exploration project and three
previous drill holes completed by First Quantum Minerals in 1995 intersected
significant copper mineralization that included 78 metres grading 0.44%
copper. The mineralization consists of chalcocite and copper oxides, all
amenable to solvent-extraction electro-winning (SE-EW) techniques. Further
information can be found on Coro's website, www.coromining.com.
Benton intends on filing on SEDAR its own NI 43-101 reports for the San
Jorge and Barreal Seco properties within the next 45 days.
Coro's management has significant exploration and mine development
experience in Latin America, and is led by President, CEO & Director, Alan
Stephens, who prior to co-founding Coro in 2005, was VP Exploration for First
Quantum Minerals. Other key members of the Coro management team include Juan
Carlos Roman, Senior VP and Chief Operating Officer (ex Antofagasta Minerals),
Michael Philpot, Executive VP, Secretary & Director and Damian Towns, CFO,
(both ex First Quantum Minerals), Angelo Peri, VP Exploration (ex Vale) and
Marcelo Cortes, Environmental and Infrastructure Manager (ex Antofagasta
Benton views the investment in Coro as an excellent opportunity to become
involved in an exciting portfolio of advanced projects and looks forward to
working closely with Coro's management.
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 @: 611 Montreal Street, Thunder
Bay, ON, P7E 3P2, Phone: (807) 475-7474, Fax: (807) 475-7200,
www.bentonresources.com; Investor relations: In Canada: First Canadian
Capital, Daniel Boase, Phone: (416) 742-5600, Fax: (416) 742-6410