THUNDER BAY, ON, April 16 /CNW/ - Benton Resources Corp. ("Benton") is
pleased to announce that it has entered into a Participation Agreement (the
"Agreement") with Stillwater Mining Company ("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"). SWC
can earn the 50% interest by completing three separate financings into Benton
in the aggregate amount of C$6.0 million dollars over a three year period.
Each financing will be priced at a 50% premium to the 20 day trailing average
of Benton's share price prior to the completion of each of the three
financings. SWC will have the right to take their interest to 70% by incurring
a further $24.0 million in exploration or completing a feasibility study on
the Goodchild Project, which ever first occurs. Benton will remain as operator
for the first three years during the initial period of the Agreement.
The specific terms of the Agreement, which are subject to regulatory
approval, are as follows:
To earn a 50% interest in the Goodchild Project, SWC must complete the
following financings at a 50% premium to the 20 day rolling average of
Benton's market share price to be determined immediately prior to the
completion of each financing:
Upon signing: A C$1.6 million private placement of which C$600,000 is to
be spent on the Goodchild Project and credited to SWC's initial earn-in
requirements. This financing will occur immediately and has been priced at
C$1.24 per share.
First year anniversary: A C$2.0 million private placement of which
C$1 million is to be spent on the Goodchild Project and credited to SWC's
initial earn-in requirements.
Second year anniversary: A C$2.4 million private placement of which
C$1.4 million is to be spent on the Goodchild Project and credited to SWC's
initial earn-in requirements.
Upon fulfilling the requirements to earn an initial 50% 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
C$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 C$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 SMC 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 entered into the Agreement with SWC.
The significant premium to Benton's share price that SWC will be required to
pay on the C$6 million of financings reflects the potential of the Goodchild
Project to host a Ni-Cu-PGE deposit of economic proportions. Benton is
currently planning a detailed airborne survey to be flown in the near future
and an aggressive summer exploration program.
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 8km and has numerous untested
airborne electromagnetic anomalies detected from a survey completed almost 20
years ago. Benton will keep their 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.
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,