THUNDER BAY, ON, Jan. 30, 2013 /CNW/ - Benton Resources Inc. (TSXV: BEX) ("Benton" or "the Company") is pleased to announce that it has entered into an agreement with Gold Royalties Corporation (TSXV: GRO) ("Gold Royalties") whereby Gold Royalties will purchase Benton's 1% net smelter return royalty interest (the "NSR Royalty") on the Bermuda Project located near Marathon, Ontario (the "Transaction"). Benton will receive $275,000 in consideration payable through the issuance of 352,565 common shares of Gold Royalties (the "Gold Royalties Shares") at a deemed price of $0.78 per Gold Royalties Share (the "Share Consideration"). Closing of the Transaction, which is expected to occur on or before February 28, 2013, is subject to certain conditions, including approval of the TSX Venture Exchange.
President Stephen Stares commented "We are very pleased to have entered into an agreement with Gold Royalties which provides our shareholders with exposure to this new and growing royalty company. We believe Benton shareholders will benefit greatly as Gold Royalties moves towards becoming a cash-flow based company in the future".
In a sign of confidence in Gold Royalties, Benton has agreed to a contractual escrow period whereby the Share Consideration will be subject to escrow with a release one year from the date of closing of the Transaction.
About the Royalty Interest
The Bermuda Project Royalty
The Bermuda Project is an approximately 7,300 hectare exploration property located along the eastern and northern margins of the Coldwell Intrusive Complex near Marathon, Ontario and adjoins the Marathon Project and Geordie Lake properties also being advanced by Stillwater Mining Company and Mitsubishi Corporation. Subject to the NSR Royalty, Stillwater Mining Company acquired 100% of the Bermuda Project as announced in December 2010. Mitsubishi Corporation subsequently acquired a 25% interest in the Bermuda Project in a transaction announced in March 2012.
The NSR Royalty applies to any ores mined from the Bermuda Property beyond a production threshold of 2.5 million aggregate ounces of gold, platinum, and palladium.
About Benton Resources Inc. (TSXV: BEX)
Benton Resources Inc. is a newly listed Canadian based junior with multiple joint ventures and a diversified property portfolio in Gold-Silver, Nickel-Copper, and Platinum group elements. The Company is well-funded with approximately $5.2 million in cash and approximately $7.0 million in marketable securities.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Inc., is the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources Inc.,
"Stephen Stares" Stephen Stares, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.
SOURCE: Benton Resources Inc.
For further information:
For further information contact Stephen Stares @:
3250 Highway 130,
Rosslyn, ON P7K 0B1
Clair Calvert: @ 204-219-4546