BENTON TO SPIN OUT COPPER - PGM COMPANY TO SHAREHOLDERS
Thunder Bay, Ontario: Benton Resources Corp (BTC: TSX.V, “Benton” or “the Company”) is pleased to announce that it is planning to spin out its 100% owned Bermuda project into a new copper - platinum group metal company to be named Coldwell Copper Corp. (CCC). The Company believes that it is not getting the deserved value for this valuable asset within the context of the Company’s other assets and accordingly management believes that creating the new company CCC will give existing Benton shareholders a chance to realize the value of the Bermuda project. Under the proposed terms Benton will issue 0.3 CCC shares for every existing Benton share held at the date of record. In conjunction with the spin out, which will be completed by plan of arrangement, it is intended that CCC complete a financing of $4 million consisting of $1.0 million of non flow-through and $3.0 million of flow-through dollars to enable it to fund an extensive drill campaign in an effort to build several NI 43-101 compliant resources in the Coldwell Complex. Benton will retain a 1% NSR on the property.
The Bermuda project, located in the Coldwell Complex near Marathon, Ontario, lies adjacent to and along strike from the Marathon Cu-PGM and Geordie Lake deposits owned by Marathon PGM Corp. The Bermuda project is host to numerous significant copper and PGM zones including Four Dam zone (65m of 0.67% Cu), Skipper Lake zone (8.3m 1.07 gpt TPM’s), Area 41 zone (61m of 1.23gpt TPM’s) and Sally Lake zone (11.4m 1.38gpt TPM’s).
The proposed spinout transaction will be subject to shareholder and regulatory approval.
Benton is a Canadian-based junior with multiple joint ventures and a diversified property portfolio in Gold, Nickel, Copper, and Platinum group elements. The Company currently has approximately $12.4 million in cash, owns approximately 36% interest in Coro Mining Corp (TSX.COP), holds an approximate 5% interest in Marathon PGM Corp (TSX.MAR) and retains a 2% Net Smelter Royalty on the northern portion of the Marathon PGM deposit.
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”
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 Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.
For further information contact Stephen Stares @:
3250 Arthur St. West, RR #2
Thunder Bay, ON P7C 4V1
Phone (807)475-7474
Fax (807)475-7200
www.bentonresources.ca
Investor Relations
Clair Calvert: @204-799-2086
