Benton and Nordmin Engineering Partner to Develop Four Deposits at Cape Ray
THUNDER BAY, ONTARIO--(Marketwired - Oct 6, 2014) - Benton Resources Inc. (TSX VENTURE:BEX) ("Benton" or "the Company") is pleased to announce that it has entered into a letter of intent ("LOI") with Nordmin Engineering Ltd. ("Nordmin") to advance towards production four of the six gold deposits at the Company's Cape Ray project located in southwest Newfoundland, should the economic viability of the project be determined. The 04, 41, 51 and Windowglass Hill deposits (the "Project") are included in the LOI while the Isle Aux Morts and Big Pond deposits will be retained 100% by Benton. Pursuant to the LOI, Benton and Nordmin will form a joint venture pursuant to which Nordmin will have the right to earn up to a 50% interest in the Project through a series of expenditures and services to be provided.
Upon signing the LOI, Benton will form a wholly-owned subsidiary, ("SubCo B" for illustrative purposes) and transfer 100% of Benton's property rights in the Project to SubCo B. Nordmin may then earn up to 50% of the Project held by SubCo B by completing a series of work commitments and project milestones which advance the Project towards production as follows:
- Benton will lead the exploration effort for the Project which will be funded by Nordmin up to the completion of the Feasibility Study. This includes any infill drilling to allow the deposits to be brought up to National Instrument 43-101 status ("NI 43-101"). The necessity for further exploration will be determined and approved by the management committee;
- Nordmin will, to earn a 5% interest, make a $250,000 cash payment in two tranches to SubCo B which will go towards the current exploration program. The first tranche of $125,000 will be advanced upon signing of the LOI and the second tranche of $125,000 within six months of signing;
- Nordmin will, by August 31, 2015 to earn a further 15% interest, fund and provide the services required to complete NI 43-101 resource estimates for the 04, 41, 51, and Windowglass Hill deposits, produce a resource model, a preliminary economic assessment (PEA), complete a detailed assessment of the Geology, Mining, Metallurgy, Environmental, Engineering, Construction, Economics and Schedule for the Project;
- Nordmin will, by August 31, 2016 to earn a further 10% interest, complete the Environmental Assessment and Impact reviews, and secure the necessary permits for a mine, mill and related plant in order for the Project to move forward;
- Nordmin will, by August 31, 2017 to earn a further 10%, complete a feasibility study for the Project (detailing and advancing all of the same issues within the PEA);
- Nordmin will, by August 31, 2018 to earn a further 10% interest, complete detailed design of the mine, mill and related plant and work to arrange a minimum of 50% of the Project financing;
- Nordmin will assume operatorship of the Project upon signing;
- Nordmin will provide the procurement, project and construction management for the Project, including commissioning and start-up. The costs and fees associated with this effort will be part of the Project financing;
- Nordmin must spend a minimum of $4.5 million of expenditures and equivalent services, with any excess going towards Project development;
- Should Nordmin fail to earn a 50% interest, operatorship will revert back to Benton;
- Should Nordmin not participate in the Project development on a pro-rata basis after the earn-in period, Nordmin will suffer a standard dilution to their pro-rata interest - such clause also applies to Benton; and
- The intent is that the work proposed within the LOI will be completed in a minimum of three (3) years and a maximum of five (5) years, dependent upon market conditions or other outside and uncontrollable situations.
A formal agreement will be completed within 30 days of the signing of the LOI. If a formal agreement is not completed within the 30 day period, either party may terminate the LOI.
Benton will continue to evaluate the Company's 100% owned Isle Aux Morts and Big Pond deposits as well as investigate other gold mineralized showings such as the Sleeper Gold Zones located between the Big Pond and Windowglass Hill deposits.
Stephen Stares, Company President and CEO stated, "This LOI is monumental for Benton shareholders and the future of the Company. Attracting a partner with such a high level of technical expertise and experience in mine development as Nordmin possesses is a testament to the quality of the Cape Ray asset and its development potential. Our team has worked hard to target, acquire and consolidate the Cape Ray land position in order to bring in a quality partner with the skill set to fully develop the project. We are very excited to work with Nordmin with hopes of becoming a future gold producer in Canada".
Chris Dougherty, P.Eng., President of Nordmin commented, "Nordmin is exceedingly pleased that we have been able to establish this partnership with Benton. This is, to the best of our knowledge, the first arrangement of this type made in the mining industry here in Canada. By providing the engineering, construction and operational know-how to Benton's renowned expertise in prospecting, exploration, and geological development, we have established a formidable team that could become a model for other junior explorers. Creativity brings opportunity, and we are very pleased to be part of this opportunity".
About Cape Ray
The Cape Ray gold project is host to 6 historical gold deposits in southwest Newfoundland. Benton controls a 100% interest in 60km of strike length along the Cape Ray Fault, a significant regional gold-bearing structure that hosts the Cape Ray deposits as well as Marathon Gold's Valentine Lake deposit located 120 km to the northeast of Benton's claim block.
About Benton Resources Inc. (TSX VENTURE:BEX)
Benton Resources Inc. is a well funded Canadian based junior with multiple joint ventures and a diversified property portfolio in Gold-Silver, Nickel, Copper, and Platinum group elements.
About Nordmin Engineering Ltd.
Nordmin Engineering Ltd. has become a leading Consulting Engineering firm in the Resource and Industrial sectors, supporting Mining, Power Generation and Pulp and Paper efforts around the world. From concepts to commissioning, from resource estimation to site closure, Nordmin provides a full range of services to its clients. With 120 professionals on staff in three offices, Nordmin has undertaken projects in North and South America, Africa, Europe, and Asia, and has worked for many of the world's largest companies, including Rio Tinto, Vale, BHP Billiton, Resolute, and Goldcorp. Nordmin's projects have ranged in capital value from a few million dollars to $3 billion (USD), continually expanding its client base worldwide. See www.nordmin.com.
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, 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.