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BENTON RECEIVES UPDATE FROM MATADOR ON CAPE RAY TRANSACTION AND PROVIDES EXPLORATION UPDATE

BENTON RECEIVES UPDATE FROM MATADOR ON CAPE RAY TRANSACTION AND PROVIDES EXPLORATION UPDATE

 

May 31, 2018

 

Thunder Bay, Ontario: Benton Resources Inc. (TSXV: BEX) (“Benton” or “the Company”) is pleased to announce that it has received an update from Matador Mining Limited (“Matador”) that their shareholders, via a General Meeting held on May 29, 2018, have voted in favour of acquiring Benton’s interest in the Cape Ray project (see Company PR dated March 26, 2018).  Pursuant to the binding term sheet (the “Agreement”), Matador, a Western Australia-based exploration company (ASX:MZZ), will acquire Benton’s 80% interest in the four main Cape Ray Deposits (held in an 80%-Benton 20%-Nordmin Engineering Limited joint venture) as well as a 100% interest in its remaining land positions held along the gold-mineralized Cape Ray Fault Zone, which includes the Isle aux Morts and Big Pond deposits, for a cash payment of AUD $3.25 million and 8,000,000 common shares of Matador based on an underlying value of AUD $0.25 per share (the “Consideration Shares”) for a total consideration of AUD $5.25 million (AUD $1 = $0.9751 CAD as at May 30, 2018).  The Company will also receive 833,333 options exercisable at a price of AUD $0.30 per share for a period of two years following the date of issuance.  

 

Benton has received a further AUD $50,000 (AUD $120,000 now received in total) in order for Matador to extend their exclusivity period for an additional six weeks while they close the requisite private placement financing and receive final regulatory approvals.  These cash payments will be deducted from the AUD $3.25 payment at the conclusion of the transaction.  Once completed, Benton will transfer title and its interest in all mineral licenses contained within the Agreement.  In addition, Benton will retain a 1% NSR on its 100%-owned Cape Ray mineral licenses, more specifically those licenses that contain no other underlying NSR’s within the Agreement.  Matador will have the right to buy-back 50% of this NSR by paying to Benton AUD $1 million.  Matador will assume all other underlying NSR’s associated with the claim packages encompassing the 04, 41, 51, Windowglass Hill, Big Pond and Isle aux Morts deposits.  Benton has also agreed to enter into a voluntary escrow agreement for 75% of the Consideration Shares whereby Benton will not trade these shares for the first 6 months following their issuance.  Benton also agrees not to trade the remaining 25% of the Consideration Shares unless such trading is conducted through a controlled sale arranged by Matador’s appointed broker or as otherwise agreed to by Benton and Matador.

 

The Company would also like to announce the mobilization of an exploration crew to the GNP and Cape Eagle gold projects in northern Newfoundland. Both projects are mapped by the government of Newfoundland as having similar geology to that of White Metal Resources Corp’s. new discovery in the area where they recently announced highly anomalous gold values from their Gunners Cove Project over approximately a 15 sq KM area in black sedimentary shale units (See White Metal Resources Corp. PR dated November 20, 2017).  In addition, Benton’s Cape Eagle project lies directly to the east of Altius Minerals Corporation’s (“Altius”) new Sail Pond lead, zinc, copper, silver and gold discovery where Altius obtained grab samples up to 2,030 g/t Ag, 7.08% Cu, 9.40% Pb, 2.54% Sb, 0.46 g/t Au and 944 g/t Ag, 5.24% Cu, 7.6% Pb, 2.32% Zn, 0.30g/t Au (South Zone) and 803 g/t Ag, 3.58% Cu, 0.11% Pb, 1.04% Zn, 0.92% Sb, 0.17 g/t Au (North Zone)(see Altius website).

 

The Company’s exploration crew will be following up on its recently completed airborne EM/Mag survey that outlined several large conductive areas along with several small conductive trends which will be high priority targets during this first phase of ground exploration.  The Company believes that some of the strong bedrock conductor responses are possibly caused by a graphitic and/or pyritic source similar to the host rocks at the Gunners Cove showings.  Prospecting, mapping and geochemical sampling will begin immediately.  The Company also believes that the Gunners Cove style of gold mineralization could potentially represent an important new discovery in a unique geological environment similar to other large gold deposits hosted in black shale environments around the world. 

 

Finally, management and the board of directors of the Company would like to announce the retirement of Clinton Barr, VP Exploration and director effective June 1, 2018.  Clinton has been an instrumental part of Benton’s team since its inception as co-founder.  Clinton’s expertise with respect to Benton’s project portfolio and guidance on exploration and evaluation endeavours will be greatly missed.  Clinton will remain as an advisor to the Company.  The Company wishes him well during his retirement and future endeavours.  

 

About Benton Resources Inc. (TSXV: BEX)

 

Benton Resources Inc is a well-funded Canadian-based project generator with a diversified property portfolio in Gold-Silver, Nickel, Copper, and Platinum group elements.  Benton holds multiple high grade projects available for option which can be viewed on the Company’s web site. Most projects have an up to date 43-101 report available. Interested parties can contact Stephen Stares from the contact below. 

 

Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Inc., is the qualified person responsible for this release has prepared, supervised the preparation or approved the scientific and technical disclosure in the news 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

 

For further information contact Stephen Stares @:

684 Squier Street,

Thunder Bay, ON

P7B 4A8

Phone (807)475-7474

Cell (807)474-9020

Fax (807)475-7200

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684 Squier St
Thunder Bay, ON
P7B 4A8
(P) 807.475.7474
(F) 807.475.7200

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