News
Release - January 28, 2008
Benton
and Marathon PGM join forces in Coldwell Complex
�
Thunder
Bay, Ontario: Benton Resources Corp. ("Benton" or the
"Company") is pleased to announce that it has signed a Letter
Agreement to enter into an Option and Joint Venture Agreement
("OJVA") with Marathon PGM Corporation (Marathon) in respect to the
eastern portion of Benton's 100% owned Bermuda Property now named the
Bamoos/Claw Lake/Four Dam Property ("the BCF Property"). The BCF Property
covers 2249 hectares and is located to the north along strike and contiguous to
the Marathon PGM-Cu Project.� Under the
terms of the OJVA Benton will allow Marathon to earn a 60% interest in the BCF
Property through work, stock issue and cash payments.
The
agreement is important for Benton and Marathon as: (i) Marathon's Main Zone
deposit extends on to the Bamoos lease by at least 200 m and this agreement
eliminates the boundary pillar that would otherwise have prevented either party
from mining; and (ii) it allows the remainder of the BCF to be developed in the
context of Marathon's existing plans to put its Marathon Project into
production with the associated capital cost savings for infrastructure. Benton
owns 100% of the BCF Property subject to an underlying 2% NSR over part of the
BCF Property and a 1% NSR over the balance.�
After a careful review of all the data including an evaluation of the
drilling to date, Benton's management believes that the best way to maximize
the value of this area is to form a relationship with Marathon and to jointly
develop the area.� In addition to
receiving immediate cash and shares of Marathon, the OJVA will allow Benton to
have a possible near term cash flow as well as possible access to infrastructure
and milling facilities if Marathon continues into a full operational mine.��� In management's view the OJVA represents
an excellent opportunity for Benton's shareholders to benefit from any newly
built mining infrastructure while keeping the Company's share dilution and cash
spending to a minimum. The OJVA will be completed and signed as soon as
practicable. Benton will continue to move forward with full exploration plans
for the Area 41 zone located in the western half of the Bermuda project
�
The
Bamoos/Claw Lake/Four Dams Property
Mineralization
at Claw Lake and Four Dams has been identified based on drilling conducted by
Benton.� The Top Zone is a recently
identified area of mineralization that straddles the property boundary.� Marathon will focus on bringing the Main
Zone extension on the Bamoos property to a resource during the 2008 exploration
campaign. The zone has been explored by Benton through drilling and trenching,
as well as by Anaconda Canada which previously explored the property in the
1960's. Marathon has all the data and drill core from the Anaconda program.
Work will commence on the BCF Property in late April.
Agreement
Terms of the BCF Property
Under
the terms of the OJVA, Benton will grant Marathon the option (the
"Option") to earn a 60% participating interest in the BCF Property by
(i) issuing Benton 120,000 common shares of Marathon on signing of the OJVA,
subject to regulatory approval (ii) completing Work Expenditures on the BCF
Property of� $1.5 million per year during
the first four Option years of the OJVA and an additional $2 million on or
before the fifth anniversary and (iii) making cash payments of� $500,000 per year on or before the
anniversary date of the OJVA for the first three years (for a total $1.5 million).
During the term of the Option (the "earn-in period"), all work will
be supervised and carried out by Marathon. After Marathon has issued the
120,000 shares, made the $1.5 million cash payments and spent the $8 million,
Marathon will have earned a 60% in the BCF Property and the JV will be formed
with Marathon having a 60% interest and Benton a 40% interest.
During
the earn in period Marathon may mine up to 200 metres north of its property
into the BCF Property. If Marathon does mine any part of the BCF Property prior
to formation of the JV, Marathon will (i) pay all costs, (ii) pay all
underlying royalties owing on the BCF Property, (iii) pay an additional 2% NSR
royalty to Benton and receive all revenue.
After
the JV is formed Marathon will be operator of the JV and it is agreed that any
project ore that is discovered on the BCF Property would be mined and processed
by Marathon at its facilities.� Under
the JV, Marathon will charge the J.V for all direct, indirect and overhead
costs including a pro rata charge to recover its capital costs as well as a 4%
management fee.
Stephen
Stares, President and CEO of Benton states... "We are very excited about
the deal with Marathon as they are a well rounded group of professionals that
have the ability to really make this area a mining district. Whenever there are
two deposits adjacent to each other that have the potential to go into
production, sharing the capital costs of milling facilities and development
almost invariably creates a tremendous benefit for all involved.� We think this is a win/win situation for
both Benton and Marathon and we look forward to the mutual advantages this
relationship provides".�
�
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"
Stephen
Stares, President
THE TSX
VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward-
looking statements in this release are made pursuant to the safe harbor
provisions of the Private Securities.
For
further information contact Stephen Stares
3290
Willard Ave���������
Thunder
Bay, Ontario, P7E 6J7
Phone
(807) 475-7474
Fax
(807) 475-7200
www.bentonresources.ca �
Investor
relations:
First
Canadian Capital Corp.
Daniel
Boase
Phone
(416) 742 5600
Toll
Free: 1-866-580-8891
In
U.S.A:
The
Windward Agency
Kelly
Boatright
Phone
(704) 588 8600