TORONTO, Oct. 17 /CNW/ - Benton Resources Corp. (the "Company")
(TSX VENTURE:BTC) is pleased to announce that it has closed the previously
announced private placement (the "Offering") of units (the "Units") and flow
through shares (the "Flow Through Shares") underwritten by a syndicate of
underwriters led by Westwind Partners Inc. and including P.I Financial Corp.,
First Canadian Capital Markets Limited and M Partners (the "Underwriters").
The Offering consisted of 9,600,000 Units priced at $1.25 and 2,070,000 Flow
Through Shares priced at $1.45 for aggregate gross proceeds of $15,001,500.
Each Unit consists of one common share and one common share purchase warrant,
with each warrant entitling the holder to purchase one additional common share
of Benton Resources Corp. at a price of C$1.60 for 18 months from the closing
In connection with the closing today, the Company also issued to the
Underwriters as partial consideration an aggregate of 816,900 compensation
warrants, each such compensation warrant entitling the holder thereof to
acquire one common share of the Company at a price of $1.25 until April 16,
The common shares and common share purchase warrants comprising the Units
and the Flow Through Shares have a hold period expiring on February 17, 2008.
Benton Resources Corp. plans to use the net proceeds from the sale of the
Units for exploration and general corporate purposes. The proceeds from the
sale of the Flow-Through Shares will be used for general exploration
expenditures, which will constitute Canadian exploration expenses (as defined
in the Income Tax Act) and will be renounced for the 2007 taxation year.
Completion of the financing remains subject to the final approval of the
TSX Venture Exchange.
The securities being offered have not, nor will they be registered under
the United States Securities Act of 1933, as amended, and may not be offered
or sold within the United States or to, or for the account or benefit of, U.S.
persons absent U.S. registration or an applicable exemption from the U.S.
registration requirements. This release does not constitute an offer for sale
of securities in the United States.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Stephen Stares, 611 Montreal Street, Thunder
Bay, Ontario, P7E 3P2, Phone (807) 475-7474, Fax (807) 475-7200,