THUNDER BAY, ON, Jan. 30, 2013 /CNW/ - Benton Resources Inc. (TSXV: BEX) ("Benton" or "the Company") is pleased to announce that it has entered into an agreement with Gold
Royalties Corporation (TSXV: GRO) ("Gold Royalties") whereby Gold
Royalties will purchase Benton's 1% net smelter return royalty interest
(the "NSR Royalty") on the Bermuda Project located near Marathon,
Ontario (the "Transaction"). Benton will receive $275,000 in
consideration payable through the issuance of 352,565 common shares of
Gold Royalties (the "Gold Royalties Shares") at a deemed price of $0.78 per Gold Royalties Share (the "Share
Consideration"). Closing of the Transaction, which is expected to occur
on or before February 28, 2013, is subject to certain conditions,
including approval of the TSX Venture Exchange.
President Stephen Stares commented "We are very pleased to have entered
into an agreement with Gold Royalties which provides our shareholders
with exposure to this new and growing royalty company. We believe
Benton shareholders will benefit greatly as Gold Royalties moves
towards becoming a cash-flow based company in the future".
In a sign of confidence in Gold Royalties, Benton has agreed to a
contractual escrow period whereby the Share Consideration will be
subject to escrow with a release one year from the date of closing of
the Transaction.
About the Royalty Interest
The Bermuda Project Royalty
The Bermuda Project is an approximately 7,300 hectare exploration
property located along the eastern and northern margins of the Coldwell
Intrusive Complex near Marathon, Ontario and adjoins the Marathon
Project and Geordie Lake properties also being advanced by Stillwater
Mining Company and Mitsubishi Corporation. Subject to the NSR Royalty,
Stillwater Mining Company acquired 100% of the Bermuda Project as
announced in December 2010. Mitsubishi Corporation subsequently
acquired a 25% interest in the Bermuda Project in a transaction
announced in March 2012.
The NSR Royalty applies to any ores mined from the Bermuda Property
beyond a production threshold of 2.5 million aggregate ounces of gold,
platinum, and palladium.
About Benton Resources Inc. (TSXV: BEX)
Benton Resources Inc. is a newly listed Canadian based junior with
multiple joint ventures and a diversified property portfolio in
Gold-Silver, Nickel-Copper, and Platinum group elements. The Company is
well-funded with approximately $5.2 million in cash and approximately
$7.0 million in marketable securities.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Inc., is
the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources Inc.,
"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.
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.
SOURCE: Benton Resources Inc.
