Benton Resources Sells Equities for Gross Proceeds of $1.8 Million to Add to the Purchase of High-Grade PGM Deposits
Benton Resources Sells Equities for Gross Proceeds of
$1.8 Million to Add to the Purchase of High-Grade PGM
Deposits
Thunder Bay, Ontario--(Newsfile Corp. - August 2, 2019) - Benton Resources Inc. (TSXV: BEX) ('Benton' or 'the Company')
today announced that it has sold 8.0 million shares of Matador Mining Ltd for gross proceeds of CDN$1.803 million. Proceeds
will be used to help finance the previously announced purchase of Rio Tinto's Escape Lake Deposit and Panoramic's Thunder
Bay North Deposit. Benton continues to hold 800,000 warrants of Matador with a strike price of AUD$0.30.
Below is the release disseminated on July 2, 2019.
"The Company executed two separate binding purchase agreements with Rio Tinto Exploration Canada ('RTEC') (the 'RTEC
Agreement') and Panoramic Resources Inc ('PAN') (the 'PAN Agreement') (together the "PGM Project").
Highlights:
High-grade, near-surface Platinum Group Metals (PGM) deposits.
Excellent infrastructure, with a paved highway and established logging roads.
Drilling highlights on the 30,000 hectare Thunder Bay North (TBN) Property include historic high-grade intercepts of
46.65
m @ 10.1 g/t Platinum+Palladium+Gold
(5.267g/t Pt + 4.555g/t Pd + 0.324g/t Au) with
1.62% Copper+Nickel
(1.154%
Cu + 0.465% Ni), incl.
13.0 m @ 33.2 g/t Pt+Pd+Au
(17.305g/t Pt + 14.817g/t Pd + 1.061g/t Au) and
4.91% Cu+Ni
(3.755% Cu + 1.308g/t Ni), incl. a spectacular intercept of
2.6 m @ 97.9 g/t Pt+Pd+Au
(52.769g/t Pt + 41.538g/t Pd +
3.630g/t Au) and
14.9% Cu+Ni
(11.599% Cu + 3.289% Ni) in drill hole BL 10-197.
Drilling highlights on the 220 hectare Escape Lake Property include
121.6 m @ 2.49 g/t Pt+Pd+Au
(1.04g/t Pt + 1.37g/t
Pd + 0.07g/t Au)
and 0.86% Cu+Ni
(0.52% Cu + 0.34% Ni), incl.
33.4 m of 7.28 g/t Pt+Pd+Au
(3.01g/t Pt + 4.08g/t Pd +
0.19g/t Au)
and 2.26% Cu+Ni
(1.49% Cu + 0.77% Ni) in drill hole 12CL0009, and
162 m @ 1.42 g/t Pt+Pd+Au
(0.61g/t
Pt + 0.76g/t Pd + 0.06g/t Au)
and 0.47% Cu+Ni
(0.28% Cu + 0.19% Ni), incl.
40.67 m 4.5 g/t Pt+Pd+Au
(1.92g/t Pt +
2.48g/t Pd + 0.18g/t Au)
and 1.26% Cu+Ni
(0.89% Cu + 0.36% Ni) in drill hole 11CL0005.
Stephen Stares, President and CEO
, stated: "Our team has been searching for an exciting PGM project in the market that
possesses what we feel are essential project qualities: a high-grade, near-surface deposit containing a resource and located
near existing infrastructure in a mining-friendly jurisdiction. These projects satisfy those criteria. Coupled with the high-grade
discovery drilling completed at Escape Lake, the Company feels that the opportunity to delineate further resources exists.
Located only 50 km from the Company's office in Thunder Bay, the projects are well-situated to aggressively move them forward.
In addition, the projects lie approximately 60 km south of North American Palladium's (NAP) Lac des Illes Mine and 10 km east
of NAP/Transition Metals' Sunday Lake Intrusion".
Thunder Bay North
The TBN Project contains the Current, Bridge and Beaver zones of which the following Historical Estimates* are defined:
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*Historical Estimate from Thomas, D. et al. 2011: Magma Metals Limited, Thunder Bay North Polymetallic Project Ontario,
Canada, NI 43-101 Technical Report on Preliminary Assessment
Mineral Resources and Mineral Reserves at the Thunder Bay North project are considered by Benton to be historic in nature. No
qualified person as defined by NI 43-101 has done sufficient work to classify the historical estimates at Thunder Bay North as
current.
The Company believes that the historical estimates at both deposits can be used as a guide in determining future
exploration drilling and the Company will need to undertake a comprehensive review of available data which may include further
drilling to verify the historic estimates at either property in order to reclassify them as current mineral resources.
The Company's
QP has verified the data but no resampling of core or any other tests on the analytical procedures has been performed by the
Company to-date.
Escape Lake
The 220 hectare Escape Lake property is located within the TBN Project claim block and along the interpreted conduit system
which contains/controls the Pt-Pd-Base Metal mineralization on the TBN Project. RTEC staked the Escape Lake block in 2006
and performed successive rounds of limited diamond drilling between 2010 and 2012, the results of which until now had not
been released publicly.
These programs yielded impressive drill intercepts highlighted by drill holes 12CL0009 and 11CL0005.
High-grade intercepts from these programs over a 1 km strike length are presented in the table below:
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Note:
Reported intercepts are core lengths may not be true widths.
A map of the PGM Projects and drill hole locations can be viewed on the Company's website along with the PEA provided by
Panoramic Resources Inc.
In addition, the Company has made available its updated corporate presentation covering these
prospective PGM Projects on its web site at
www.bentonresources.ca
.
Purchase Agreements
Pursuant to the RTEC Agreement, Benton will purchase a 100% interest in RTEC's Escape Lake property for $6 million CAD
(the "Escape Lake Purchase Price"), subject to obtaining financing and receipt of regulatory approval.
The Company is to obtain
commitments for $4 million of the Escape Lake Purchase Price within 90 days of execution of the RTEC Agreement and closing
of the acquisition and payment off the $6 million Escape Lake Purchase Price is to take place within 10 days of closing the
acquisition of the TBN Project.
RTEC will retain a 1% Net Smelter Royalty ('NSR') on the Escape Lake portion of the PGM
Project.
Under the PAN Agreement, the Company will acquire PAN's wholly-owned Canadian subsidiary, Panoramic PGMs
Canada Ltd., which holds the Thunder Bay North Project (the 'TBN Project') for $9 million CAD.
Under the PAN Agreement, the Company will have 60 days upon signing to complete a final purchase and sale agreement plus
an additional 60 days to obtain financing and receive all requisite regulatory approvals for the transaction.
Upon signing the final
purchase and sale agreement, Benton will pay PAN a $250,000 deposit which will be offset against the purchase price.
The
TBN Project has an existing 3% NSR on a number of claims located within the claims package. Closing of the purchase of the
PGM Project is also contingent upon both RTEC and PAN mutually releasing each other from all future obligations from the earn-
in joint venture agreement that was in place.
Benton is currently considering several strategic options for financing that best serves shareholders of the Company and
aggressively moves the PGM Project forward.
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. Most projects have an up-to-date 43-101 Report available.
Parties interested in seeking more information about properties available for option can contact Mr. Stares at the number below.
For further information, please contact:
Stephen Stares, President & CEO
Phone:
807-475-7474
Email:
CHF Capital Markets
Cathy Hume, CEO
Phone:
416-868-1079 x231
Email:
Website:
www.bentonresources.ca
Twitter:
@BentonResources
Facebook:
@BentonResourcesBEX
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.
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