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").
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:
*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.
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:
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.
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.
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, 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
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x231
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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.