Benton Resources Corp. (TSX VENTURE:BTC - News; "Benton"
or "the Company") is pleased to announce that it is initiating a
process of separating its investment in Coro Mining Corp. ("Coro")
from substantially all of its other assets and activities. It is anticipated
that this will be implemented by a spin out of the majority of Benton's
projects, cash and equity investments (other than Coro) into a new
exploration company ("Newco"). After the
spin out is completed Benton's assets will consist of 55.4 million common
shares of Coro (representing approximately 41.6% of the issued capital of
Coro), 2.43 million share purchase warrants of Coro exercisable at $0.50, one
43-101 compliant project and a cash balance in a yet to be determined amount
sufficient to maintain ongoing operations and objectives. Benton's ongoing
exploration activities will thereafter be carried out through Newco.
Benton's current market capitalization is approximately $77 Million,
which is significantly below the market value of its equity holdings in other
listed companies. Moreover, the market is attributing no value to Benton's
current cash position of approximately $12.6 million or its extensive
property portfolio and joint ventures with companies such as Teck Resources and Rio Tinto Exploration. This
substantial disconnect between the underlying value of Benton's assets and
its stock market valuation has prompted Benton to propose the spin out to its
shareholders in order to maximize the value of its cash, equities and
exploration assets as well as to unlock the value of its holding in Coro.
Benton is currently working with its financial advisors Stifel
Nicolaus Weisel and has
retained Canadian taxation advisors in order to determine a separation of the
Company's assets and share ratio for the spin out that achieves optimal tax
efficiency and fairness. This share ratio, which is expected to result in a
pro-rata distribution to Benton's shareholders, will be announced as soon as
it has been determined. The spin out transaction will be completed pursuant
to a plan of arrangement and remains subject to regulatory and shareholder
approvals.
Stephen Stares, Company President and CEO commented "It is
unfortunate that the current share price is not reflecting the fair value of
identifiable cash and equity positions in Benton. Benton is an exploration
company with strategic properties in mining-friendly jurisdictions, many of
which have joint venture partners sharing the risk and expense associated
with exploration. This transaction will ideally unlock the value of our
strong treasury and property portfolio that our shareholders deserve".
In addition Benton would like to provide an update on its current and
ongoing exploration programs. Drilling has commenced on Benton's Shebandowan Gold project testing newly discovered gold
showings associated with coincidental induced polarization chargeability
anomalies identified from a recently completed geophysical survey. Gold
values ranging from 0.05gpt to 13.0gpt have been obtained from surface grab
samples and 6-8 drill holes will test these promising target areas.
Benton has also started a drill campaign with its Australian joint
venture partner Glory Resources on its Onion Lake property located 40kms
north of Thunder Bay. The program is designed to test various magnetic
anomalies in search for copper-nickel-platinum-palladium mineralization
similar to the recent discovery made by Magma Metals several kilometres along strike to the east.
Drilling has also commenced on the Long Range joint venture project in
west central Newfoundland with joint venture partner Buchans
Minerals Corporation. Several holes are planned to test and follow up on the
Portage Zone Ni-Cu zone and the Range Cu zone discovered last year. The
Company will release results of these programs as soon as data is received
and compiled.
About Benton
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 $12.6 million in cash, owns
approximately 55.4 million shares and 2.43 million warrants in Coro Mining
Corp. (TSX:COP - News), holds approximately
348,000 shares of Stillwater Mining Company (NYSE:SWC - 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 4 million shares
of Mineral Mountain Resources Ltd. (TSX VENTURE:MMV - News), and holds 815,000
shares of Bell Copper Corporation (TSX VENTURE:BCU - News).
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.
President
(807)475-7474
(807)475-7200 (FAX)
www.bentonresources.ca
Clair Calvert
Investor Relations
204-799-2086
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