2007-07-20 13:03 ET - News Release
Mr. Stephen Stares reports
BENTON RESOURCES CORP. (BTC, BTC-WT) FINALIZES PARTICIPATION AGREEMENT AND COMPLETES FIRST EQUITY FINANCING WITH STILLWATER MINING CORP.
Benton Resources Corp., further to the report in Stockwatch news on April 16, 2007, has finalized its participation agreement with Stillwater Mining Company (SWM) whereby SWM has the exclusive right to earn up to an initial 50-per-cent interest in the Goodchild and South Goodchild Ni-Cu-PGE projects by completing three separate financings into Benton in the total amount of $6-million over a three-year period at a 50-per-cent premium to the 20-day trailing average of Benton's share price prior to the completion of each of the three financings. SWM will have the right to take its interest to 70 per cent by incurring a further $24-million in exploration or completing a feasibility study on the Goodchild project, whichever first occurs. Benton will remain as operator for the first three years during the initial period of the agreement.
In accordance with the agreement, SWM has completed the first financing of $1.6-million consisting of 1,290,322 common shares at a price of $1.24 per common share. The common shares issued to SWM are subject to a four-month hold period which expires on Nov. 11, 2007. Benton is, under the agreement, required to spend $600,000 of the first financing on the Goodchild project.
To earn a 50-per-cent interest in the Goodchild project, SWM must complete: (i) a second financing of $2-million on July 10, 2008, at 50-per-cent premium to the market price at that time, of which Benton will be required to spend $1-million on the Goodchild project; and (ii) a third financing of $2.4-million on July 10, 2009, at 50-per-cent premium to the market price at that time, of which Benton will be required to spend $1.4-million on the Goodchild project.
The Goodchild project is located approximately 15 kilometres north of Marathon, Ont., and is host to several nickel showings with grab samples assaying up to 6.72 per cent nickel (Falconbridge/Xstrata personnel). The large ultramafic intrusion measures approximately five kilometres by eight kilometres and has numerous untested airborne electromagnetic anomalies detected from a survey completed almost 20 years ago. Benton will keep its shareholders updated on developments at the Goodchild project as exploration moves forward.
Clinton Barr, PGeo, vice-president of exploration for Benton Resources, is the qualified person responsible for this release.
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