|
Benton Resources Corp.
("Benton" or "the Company") (TSX VENTURE:BTC - News) is pleased to report
that pursuant to the closing of the acquisition of Marathon PGM Corporation
("Marathon") (TSX:MAR
- News) by Stillwater
Mining Company ("Stillwater") (NYSE:SWC - News), 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 - News; 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
- News), holds 782,500
shares in Marathon Gold Corp. (TSX:MOZ - News), holds 1.6 million
shares in Puget Ventures (TSX VENTURE:PVS - News), holds 815,000 shares
of Bell Copper Corporation (TSX VENTURE:BCU - News) 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.
Contact:
Stephen Stares
Benton Resources Corp.
3250 Arthur St. West, RR #2, Thunder Bay, ON P7C 4V1
(807) 475-7474
(807) 475-7200 (FAX)
www.bentonresources.ca
Clair Calvert
Investor Relations |