Benton Receives $8.26 Million in Cash and Shares on Closing of Marathon Takeover Transaction
December 07 2010 - 11:43AM
Marketwired
Benton Resources Corp. ("Benton" or "the Company") (TSX VENTURE:
BTC) is pleased to report that pursuant to the closing of the
acquisition of Marathon PGM Corporation ("Marathon") (TSX: MAR) by
Stillwater Mining Company ("Stillwater") (NYSE: SWC), Benton
received cash proceeds amounting to $2,777,875 ($1.775 for each
Marathon share held) in addition to 175,280 common shares of
Stillwater (based on the acquisition ratio of 0.112 Stillwater
shares for every Marathon share held) worth approximately $3.96
million (based on December 6, 2010 Stillwater closing price and
closing exchange rate) for the Company's 1,565,000 shares of
Marathon. In addition, Benton received 782,500 shares (one half
share for every full Marathon share held) of Marathon Gold Corp.
(TSX: MOZ) (a new public company created as part of the Stillwater
acquisition which holds the gold exploration assets of Marathon)
worth approximately $1.52 million (based on December 6, 2010
closing price) which commenced trading at market open on December
3, 2010. Stillwater acquired all of the outstanding shares of
Marathon pursuant to a plan of arrangement under the Canada
Business Corporations Act. The transaction was previously approved
by 99.98 per cent of the Marathon shareholders who voted in respect
of the arrangement, was subsequently approved by the Ontario
Superior Court of Justice and then received ministerial approval
under the Investment Canada Act. A portion of Benton's Marathon PGM
shares (300,000) were still subject to the original voting trust
agreement and as a result will be handled in a separate tranche.
The proceeds on these shares are still outstanding at this time but
are expected to be received according to the Stillwater acquisition
ratio above very shortly.
Benton received the majority of its Marathon shares in March
2009 when it sold a portion of its Bermuda land package consisting
of one mining lease (the Bamoos lease) and an adjacent claim block
covering a total of 329 hectares for 1.5 million Marathon shares,
$300,000 cash and a 2% net smelter returns royalty (see Benton PR
dated March 25, 2009).
Stephen Stares, Benton's President and CEO commented, "We are
very pleased for our shareholders as this transaction has yielded
substantial value for Benton in the form of both a cash injection
as well as highly prospective Stillwater shares with tremendous
upside potential, all at no dilution to our shareholders. In
addition, we are pleased to have a stake in Marathon Gold Corp. as
the Marathon team has made great achievements thus far in exploring
their gold property portfolio. We look forward to benefiting from
the advancement of both Marathon Gold and Stillwater moving forward
and wish both teams much success."
Benton is a Canadian based junior with multiple joint ventures
and a diversified property portfolio in Gold, Nickel, Copper, and
Platinum group elements. The Company currently has approximately
$9.4 million in cash, owns 38.1 million shares and 19.1 million
warrants in Coro Mining Corp. (TSX: COP), holds 782,500 shares in
Marathon Gold Corp. (TSX: MOZ), holds 1.6 million shares in Puget
Ventures (TSX VENTURE: PVS), holds 815,000 shares of Bell Copper
Corporation (TSX VENTURE: BCU) and retains a 2% Net Smelter Royalty
on the northern portion of the Marathon PGM deposit.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources
Corp., is the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources
Corp.
Stephen Stares, President
Forward-looking statements in this release are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform act of 1995. Investors are cautioned that such
forward-looking statements involve risks and uncertainties.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts: Benton Resources Corp. Stephen Stares 3250 Arthur St.
West, RR #2, Thunder Bay, ON P7C 4V1 (807) 475-7474 (807) 475-7200
(FAX) www.bentonresources.ca Investor Relations Clair Calvert (204)
799-2086