Benz Mining Corp. Acquires Ruby Hill West and East Projects Consolidates Land Position near Eastmain Gold Project
Benz Mining Corp. Acquires Ruby Hill West and East
Projects Consolidates Land Position near Eastmain Gold
Project
Vancouver, British Columbia--(Newsfile Corp. - April 30, 2020) -
(TSXV: BZ) Benz Mining Corp. (the "
Company
" or "
Benz
"), is
pleased to announce that it has entered into an amending agreement (the "
Amending Agreement
") in connection with the
Eastmain Mine project pursuant to which it has acquired an option to earn a 100% interest in the Ruby Hill West and Ruby Hill
East properties, located west of its high grade Eastmain gold mine project in James Bay District, Quebec.
Ruby Hill West includes one block of 180 contiguous mining claims totaling 9,485 hectares which includes more than 30 km of
strike along a favourable volcano-sedimentary greenstone sequence within Upper Eastmain River greenstone belt. The
concessions are approximately 25 km west of the main Eastmain gold mine project.
Ruby Hill East includes one block of 88 contiguous mining claims totaling 4,640 hectares and which are immediately west and
contiguous to the flagship Eastmain gold mine project concessions.
The principal exploration targets on the Ruby Hill West and East properties correspond to volcanic-hosted lode gold deposits
characterized by stratabound, disseminated and massive chalcopyrite-pyrrhotite-pyrite veinlets associated with fine grained
chert units.
Including the Eastmain Mine Project, Benz now controls more than 22,100 hectares of ground in the highly prospective Upper
Eastmain River greenstone belt.
Miloje Vicentijevic, President and CEO, commented, "We are extremely excited about the addition of the large Ruby Hill West
and East concessions to our flagship Eastmain gold mine project as it adds a considerable exploration component in a highly
prospective area to our company".
Mr. Vicentijevic, continued, "With our recently closed financing, we intend to aggressively advance the Eastmain gold mine
project while also developing an exploration program to include our new Ruby Hill targets."
Figure 1
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Transaction Terms
Pursuant to the Amending Agreement entered into with Eastmain Resources Inc. ("
Eastmain
"), the terms of the original option
to acquire up to a 100% interest in the Eastmain gold mine project were amended to remove the Company's obligation to incur
$500,000 in exploration expenditures by October 23, 2020 and add such expenditures to the work requirement for the period
ending October 23, 2022.
The Amending Agreement also adds the Ruby Hill West and Ruby Hill East properties to the Eastmain gold mine project.
Benz
can earn a 75% interest in such properties on the following acquisition terms:
Cash payments totalling $375,000 as follows:
$75,000 within three business days of TSX Venture Exchange approval;
$50,000 on October 23, 2020;
$50,000 on October 23, 2021;
$100,000 on October 23, 2022; and
$100,000 on October 23, 2023, which can be paid in shares at the election of Eastmain based on the prevailing
VWAP of the Company's shares up to a maximum of 500,000 shares.
A share payment of 2,000,000 common shares of Benz or a cash payment in an amount to enable Eastmain to acquire
2,000,000 common shares of Benz within three months.
The issuance of 4,000,000 share purchase warrants, each warrant enabling the holder to purchase one common share of
Benz at a price of $0.12 until April 27, 2023.
Benz will have the right to earn an additional 25% interest in the Ruby Hill West and Ruby Hill East properties by paying an
additional $100,000 to Eastmain by October 23, 2025, which can be paid in shares at the election of Eastmain based on the
prevailing VWAP of the Company's shares up to a maximum of 500,000 shares.
Following the acquisition of a 100% interest in the Ruby Hill West and Ruby Hill East properties Eastmain will retain a 1% net
smelter return royalty, of which one half may be purchased for $500,000 thereby reducing it to a 0.5% net smelter returns royalty.
The net smelter returns royalty is also offset by any pre-existing royalties which may reduce the royalty burden.
The overall effect of the Amending Agreement is to modify the existing option agreement to eliminate the requirement to meet a
minimum expenditure requirement for 2020 while expanding the property package and facilitating cash payments to Eastmain.
The acquisition of the Project is subject to the approval of the TSX Venture Exchange.
Eastmain Gold Project
Benz entered into an option agreement with Eastmain Resources Inc., to earn a 100% interest in the former producing Eastmain
gold mine project located 316 km northeast of Chibougamau, Quebec. Accessible year round by road, the project includes 152
claims totalling 8,014 hectares in size plus one industrial lease permit.
In 1994 to 1995, MSV Resources mined 118,356 tonnes grading 10.58 g/t Au and 0.3% Cu by room and pillar mining. The
mineralization was processed at the Copper Rand Mine in Chibougamau and 40,000 oz of Au was recovered.
A 43-101 resource estimate prepared for Benz, includes Indicated resources totalling 899,000 tonnes grading 8.19 grams gold
per tonne and 0.13% copper for gold and copper resources of 232,000 oz and 2.57 million pounds respectively.
Inferred resources total 579,000 tonnes grading 7.48 grams gold per tonne and 0.16% copper for 152,000 oz of gold and 2.04
million pounds of copper.
The resource estimate is based on a gold price of US$1,288 and a US$0.77 exchange rate.
Additional information about the Eastmain gold mine project is available in a 43-101 report dated September 3, 2019 by P&E
Mining Consultants Inc. and available at
www.sedar.com
The scientific and technical content of this press release has been reviewed, prepared and approved by Nick Tintor, a Qualified
Professional Member of the Mining & Metallurgical Society of America and a Qualified Person for the purposes of National
Instrument 43-101.
This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire
services or dissemination in the United States. This news release does not constitute an offer to sell or a solicitation of an offer
to buy any of the Units in the United States or to, or for the account or benefit of, any U.S. person. The Units (or any underlying
securities) have not been and will not be registered under the United States Securities Act of 1933, as amended (the "
U.S.
Securities Act
"), or any securities laws of any state of the United States and may not be offered or sold within the United States
or to, or for the account or benefit of, any U.S. person unless an exemption from such registration requirements is available.
"United States" and "U.S. person" are as defined in Regulation S under the U.S. Securities Act.
About Benz Mining Inc.
Benz Mining Corp. brings together a veteran team of engineers, geophysicists, geologists, and finance professionals with a
focused strategy to acquire and develop mineral projects with an emphasis on safe, low risk jurisdictions favorable to mining
development.
Benz is earning a 100% interest in the former producing high grade Eastmain gold mine project, including Ruby
Hill West and Ruby Hill East in Quebec.
Benz has 57,215,118 million shares issued and outstanding.
On behalf of the Board of Directors of Benz Mining Corp.
Miloje Vicentijevic, President and Chief Executive Officer
For more information please contact
Benz Mining Corp.
Telephone: 604.617.1239
Email:
Forward-Looking Information:
Certain statements contained in this news release may constitute "forward-looking
information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans,
expectations and estimates of management at the date the information is provided and is subject to certain factors and
assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen
events and that the Company obtains regulatory approval. Forward-looking information is subject to a variety of risks and
uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in
such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to
be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that
occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's
financial condition and development plans change, and delays in regulatory approval, as well as the other risks and uncertainties
applicable to the Company as set forth in the Company's continuous disclosure filings filed under the Company's profile at
www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by
applicable law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED
IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ACCURACY OR
ADEQUACY OF THIS RELEASE.
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