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Thunder Bay ON, August 11, 2020 – Benton Resources Inc. (‘Benton’ or ‘the Company’) (TSX-V: BEX) is pleased to announce that the Company has entered into an Option Agreement (the "Agreement") with 2752300 Ontario Inc.(the "Optionee"),a private company, whereby the Optionee can earn up to a 100% interest in the Saganaga Gold project (the "Project"). The Saganaga project is a large land package located in the Shebandowan Greenstone belt, 120km west of Thunder Bay, Ontario, Canada.
The Optionee can aquire an initial 70% interest in the Project by:
- paying the Company $50,000 in cash and issuing the greater of 1,000,000 Optionee common shares or 3% of the issued and outstanding Optionee common shares to the Company upon execution of the Agreement;
- paying the Company $50,000 in cash and issuing the greater of 1,000,000 Optionee common shares or 2% of the then issued and outstanding Optionee common shares to the Company and incurring a minimum of $200,000 in qualified exploration expenditures on or before the first anniversary of the effective date of the Agreement; and,
- paying the Company $50,000 in cash and issuing the greater of 1,000,000 Optionee common shares or 1.5% of the then issued and outstanding Optionee common shares to the Company and have completed a further $200,000 in qualified exploration expenditures on or before the second anniversary of the effective date of the Agreement.
The Optionee, at its election, may then provide the Company notice that it intends to earn an additional 30% interest (taking interest to 100% subject to underlying NSR's) in the Project by:
- paying the Company $50,000 cash and issuing 2,000,000 Optionee common shares to the Company and completing a further $400,000 in qualified exploration expenditures on the Project.
In the event that the Optionee completes a resource calculation for the Project in accordance with NI 43-101, the Optionee will issue to the Company 1,000,000 Optionee common shares. The Optionee has covenanted to use its commercial best efforts to complete a liquidity event which consists of a going public transaction by way of IPO, reverse takeover or similar transaction.
The Project is host to multiple gold zones with highlights from drilling including 5.0gpt Au over 20.6m in the Star Zone and 32.0gpt Au over 5.9m on the Powell Zone.
QP
Nathan Sims (P.Geo.), Senior Exploration Manager for Benton Resources Inc., the 'Qualified Person' under National Instrument 43-101, has approved the scientific and technical disclosure in this news release and prepared or supervised its preparation.
On behalf of the Board of Directors of Benton Resources Inc.,
"Stephen Stares"
Stephen Stares, President
About Benton Resources Inc.
Benton Resources 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 website. Many projects have an up-to-date 43-101 Report available.
For further information, please contact:
Stephen Stares, President & CEO
Phone: 807-475-7474
Email: sstares@bentonresources.ca
Cathy Hume, CHF Capital Markets
Phone: 416-868-1079 x251
Email: cathy@chfir.com
Website: www.bentonresources.ca
Twitter: @BentonResources
Facebook: @BentonResourcesBEX
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPTRESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The informationcontained herein contains "forward-looking statements" within themeaning of applicable securities legislation. Forward-looking statements relateto information that is based on assumptions of management, forecasts of futureresults, and estimates of amounts not yet determinable. Any statements thatexpress predictions, expectations, beliefs, plans, projections, objectives,assumptions or future events or performance are not statements of historicalfact and may be "forward-looking statements."
Forward-looking statements are subjectto a variety of risks and uncertainties which could cause actual events orresults to differ from those reflected in the forward-looking statements,including, without limitation: risks related to failure to obtain adequatefinancing on a timely basis and on acceptable terms; risks related to theoutcome of legal proceedings; political and regulatory risks associated withmining and exploration; risks related to the maintenance of stock exchangelistings; risks related to environmental regulation and liability; thepotential for delays in exploration or development activities or the completionof feasibility studies; the uncertainty of profitability; risks anduncertainties relating to the interpretation of drill results, the geology,grade and continuity of mineral deposits; risks related to the inherentuncertainty of production and cost estimates and the potential for unexpectedcosts and expenses; results of prefeasibility and feasibility studies, and thepossibility that future exploration, development or mining results will not beconsistent with the Company's expectations; risks related to gold price andother commodity price fluctuations; and other risks and uncertainties relatedto the Company's prospects, properties and business detailed elsewhere in theCompany's disclosure record. Should one or more of these risks anduncertainties materialize, or should underlying assumptions prove incorrect,actual results may vary materially from those described in forward-lookingstatements. Investors are cautioned against attributing undue certainty toforward-looking statements. These forward looking statements are made as of thedate hereof and the Company does not assume any obligation to update or revisethem to reflect new events or circumstances. Actual events or results coulddiffer materially from the Company's expectations or projections.