Benton to acquire PGM property
2005-05-25 05:44 MT - News Release
Mr. Stephen Stares reports
BENTON RESOURCES CORP. (BTC) ACQUIRES GROUND DIRECTLY ADJACENT TO MARATHON PGM DEPOSIT
Benton Resources Corp. has signed an agreement with Bamoos Minerals Inc. (an affiliate of Teck Cominco Ltd.) to purchase a 100-per-cent interest in one mining lease comprising 16 units contiguous to the south boundary of Benton's Bermuda property and the north boundary of Marathon PGM Corp.'s property. According to Marathon PGM Corp.'s final prospectus, the new property hosts the strike extension of the horizon that hosts the Marathon deposit. The Marathon deposit has a measured and indicated resource of 23 million tonnes at 1.38 grams per tonne palladium, 0.34 gram per tonne platinum and 0.11 gram per tonne gold, and an inferred 8.4 million tonnes at 1.46 grams per tonne palladium, 0.34 gram per tonne platinum and 0.12 gram per tonne gold for a total of 1.9 million ounces combined Pt+Pd+Au (Marathon PGM Corp. news issued in Stockwatch on March 30, 2005). The agreement with Bamoos Minerals Inc. is subject to regulatory approval and Bamoos Minerals Inc. shareholder approval. Under the terms of the agreement Benton can earn a 100-per-cent interest (subject to a 2-per-cent net smelter royalty and a 50-per-cent back-in clause) by spending $400,000 of exploration expenditures over four years and issuing 300,000 units of Benton's stock to Bamoos Minerals Inc. Each unit will consist of one share and one warrant, exercisable for two years. The warrant will entitle Bamoos to purchase one common share of Benton at a price per share equal to the five-day weighted average closing market price of Benton shares on the TSX Venture Exchange on the day immediately prior to the date of issuance of the warrants. The Benton shares and warrants comprised in the units will be subject to hold periods in accordance with the TSX Venture Exchange policy and Canadian Multilateral Instrument 45-102.
In the event Benton completes it obligations to earn 100 per cent of the property, Bamoos Minerals Inc. would have the right to back in to the property for a 50-per-cent interest by spending two times the amount spent by Benton, up to a maximum of $1.5-million.
Clinton Barr, PGeo, vice-president of exploration for Benton Resources Corp., is the qualified person responsible for this news.
We seek Safe Harbor.
K.D.
