Benton Resources Inc. is pleased to announce it has been advised that Clean Air Metals Inc. has paid the sum of CAD$1.0 Million directly to Rio Tinto Exploration Canada Inc. as Vendor, pursuant to the terms of the definitive option agreement between the Company and Clean Air . Clean Air acquired the Option to acquire a 100% right, title and interest in and to the Escape Lake Property, subject to a 1.0% net smelter …
Benton Resources Inc. (TSXV: BEX) (‘Benton’ or ‘the Company’) is pleased to announce it has been advised that Clean Air Metals Inc. (“Clean Air”) has paid the sum of CAD$1.0 Million directly to Rio Tinto Exploration Canada Inc. (“RTEC”) as Vendor, pursuant to the terms of the definitive option agreement (the “Option Agreement”) between the Company and Clean Air (see Clean Air press release dated January 6, 2020 and May 14, 2020). Clean Air acquired the Option to acquire a 100% right, title and interest in and to the Escape Lake Property, subject to a 1.0% net smelter return royalty to be retained by RTEC, from Benton under the Option Agreement, with such option conditional on Benton exercising its pre-existing option to acquire the Escape Lake Property from RTEC and under the Option Agreement, Clean Air has agreed to make all of the payments of Benton to RTEC that are required in order for Benton to exercise the pre-existing option. Clean Air Metals agreed to pay to RTEC an aggregate of C$6 million in order for Benton to exercise the pre-existing option, C$3 million of which was originally paid by Benton to RTEC on October 9, 2019, and C$1 million of which was paid by the Clean Air to RTEC on October 9, 2020. The remaining financial obligation to RTEC on behalf of Benton is $1 million due October 9, 2022.
In addition, pursuant to the Option Agreement outlining the terms of a definitive share purchase agreement dated January 6, 2020 entered into between Clean Air and Magma Metals Pty Ltd. (“Magma”), Clean Air completed the acquisition of 100% of Panoramic Resources Limited’s indirect subsidiary, Panoramic PGMs (Canada) Ltd. (“Pan PGMs”), which owns the Thunder Bay North Property (the “TBN Property”), hosting the Current Lake Deposit. Pan PGM’s is now a 100% wholly-owned subsidiary of Clean Air Metals. In consideration of the acquisition of Pan PGMs, Clean Air Metals has also agreed to pay to Magma in equal installments over a three-year period, an aggregate of C$9 million, C$4.5 million of which was paid on closing of the transaction on May 14, 2020, and C$1.5 million of which was paid on May 14, 2021. Two payments of $1.5 million remain by May 13, 2022 and May 13, 2023 respectively.
The Escape Lake Property and the TBN Property are collectively referred to as the “TBN Project”. Clean Air has the right to prepay all remaining property payments at any time. There are no additional exploration or other spending commitments required to fully vest the Option Agreement.
Benton holds 24.6 million shares of Clean Air as well as a 0.5% net smelter return royalty from production on the Escape Lake Property and a 0.5% net smelter return royalty from production on any mineral claims comprising the TBN Project over which a net smelter royalty has not previously been granted.
On behalf of the Board of Directors of Benton Resources Inc.,
Stephen Stares, President
About Benton Resources Inc.
Benton Resources Inc. is a well-funded mineral exploration company listed on the TSX Venture Exchange under the symbol BEX. Following a project generation business model, Benton has a diversified, highly-prospective property portfolio in Gold, Silver, Nickel, Copper, and Platinum Group Elements and currently holds large equity positions in other mining companies that are advancing high-quality assets. Whenever possible, BEX retains Net Smelter Return (NSR) royalties for potential long-term cash flow. Benton has also recently entered into a 50/50 strategic alliance with Sokoman Minerals Corp. (TSXV: SIC) through three large-scale joint venture properties including Grey River, Golden Hope and Kepenkeck in Newfoundland that are now being explored.
For further information, please contact:
Stephen Stares, President & CEO
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x251
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 Companies’ expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Companies prospects, properties and business detailed elsewhere in the Companies’ 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 Companies do not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Companies’ expectations or projections.
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