Benton and Metals Creek Receive Conditional Approval to Option Staghorn and Rose Properties to Quadro Resources
Thunder Bay, Ontario--(Newsfile Corp. - August 21, 2017) - Benton Resources Inc. (TSXV: BEX) ("Benton" or "the Company") and Metals Creek Resources Corp. (TSXV: MEK) ("Metals Creek") are pleased to announce that they have been advised by Quadro Resources Ltd. (TSXV: QRO.H) ("Quadro") of the conditional acceptance of its reactivation from the NEX board to the TSX Venture Exchange (the "Reactivation") and the conditional acceptance of the option to acquire a 100% interest of and Metals Creek and Benton's Staghorn property, located in Newfoundland and an assignment of Benton's and Metal Creek's rights to acquire the newly optioned Rose Gold property (the "Option"), pursuant to the terms of the option agreement Quadro has with Benton and Metals Creek (the "Quadro Option Agreement"). The Rose Gold property is contiguous with the northern border of the Staghorn property, and is further described in the Company's press release dated April 12, 2017.
Final acceptance of the Reactivation is subject to Quadro: Obtaining final acceptance of the Option; settling approximately $225,000 in debt by the issuance of shares at $0.10 per share (final acceptance pending); and completing a financing of up to $2 million. Under the terms of the Quadro Option Agreement and the terms agreed to by the TSX Venture exchange are, Quadro had to complete a 2:1 share consolidation (completed), has to complete a financing of up to $2 million and issue 4,000,000 common shares (post-consolidation) to each of Metals Creek and Benton. Quadro must also assume all the obligations under the Rose Gold property option, for which the optionor has agreed to accept common shares of Quadro in lieu of the 250,000 common shares of Metals Creek and 250,000 common shares of Benton (450,000 shares combined) originally negotiated. The Quadro Option Agreement will be subject to a royalty to be granted in favor of Metals Creek and Benton (the "Metals Creek/Benton Royalty"), as well as existing royalties held by Ed Northcott and Gilbert Lushman (the "Northcott/Lushman Royalty"), and by Shawn Rose (the "Rose Royalty).
The Staghorn project has multiple gold showings along the Cape Ray Fault approximately 30km SW along strike of Marathons Gold's Newfoundland deposits. The Staghorn project known zones including the Woods lake zone, drilling of 6.18 grams per ton (gpt) gold (Au) over 5.11 meters (m),(see Metals Creek PR dated December 2, 2009), Ryan's Hammer, 27.80gpt Au in grabs, (see Benton/Metals Creek PR dated September 5, 2015), Glimmer, 196.7gpt Au in grabs, (see Metals Creek PR dated May 11, 2010), Rich House,visible gold - 189gpt Au in grabs (see Benton/Metals Creek PR dated September 1, 2015) and the new Rose discovery of up to 18.86 gpt Au in the Rose Zone (see Benton/Metals Creek PR dated April 12, 2017). The funds raised will be used to advance the project immediately and for general working capital.
About Benton Resources Inc. (TSXV: BEX)
Benton Resources Inc is a well-funded Canadian-based junior with a diversified property portfolio in Gold-Silver, Nickel, Copper, and Platinum group elements.
Benton's flagship project is the Cape Ray gold deposits located on the west coast of Newfoundland. The results of the Cape Ray PEA include a pre-tax net present value ("NPV") at a 7% discount rate of $48.5 million with a pre-tax internal rate of return ("IRR") of 31% and a post-tax NPV at a 7% discount rate of $32.4 million with a post-tax IRR of 25%. The reader should be cautioned that the PEA is preliminary in nature. It contains inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Inc., is the qualified person responsible for this release has prepared, supervised the preparation or approved the scientific and technical disclosure in the news release.
On behalf of the Board of Directors of Benton Resources Inc.,
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
For further information contact Stephen Stares @:
684 Squier Street,
Thunder Bay, ON P7B 4A8
Source: Newsfile Corp.