Benton sells royalty interest in Bermuda Project to Gold Royalties
Corporation
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.