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Benton Advised of Clean Air Metals' Payment to Rio Tinto on Escape Lake Option
Thunder Bay, Ontario--(Newsfile Corp. - October 12, 2021) - Benton Resources Inc. (TSXV: BEX) ...
About this update from Benton Resources, Inc.
[{"type":"text","content":"Benton Advised of Clean Air Metals' Payment to Rio Tinto on Escape Lake OptionThunder Bay, Ontario--(Newsfile Corp. - October 12, 2021) - Benton Resources Inc. (TSXV: BEX) ('Benton' or 'the Company') is pleased to announce it has been advised that Clean Air Metals Inc. (\"Clean Air\") has paid the sum of CAD$1.0 Million directly to Rio Tinto Exploration Canada Inc. (\"RTEC\") as Vendor, pursuant to the terms of the definitive option agreement (the \"Option Agreement\") between the Company and Clean Air (see Clean Air press release dated January 6, 2020 and May 14, 2020). Clean Air acquired the Option to acquire a 100% right, title and interest in and to the Escape Lake Property, subject to a 1.0% net smelter return royalty to be retained by RTEC, from Benton under the Option Agreement, with such option conditional on Benton exercising its pre-existing option to acquire the Escape Lake Property from RTEC and under the Option Agreement, Clean Air has agreed to make all of the payments of Benton to RTEC that are required in order for Benton to exercise the pre-existing option. Clean Air Metals agreed to pay to RTEC an aggregate of C$6 million in order for Benton to exercise the pre-existing option, C$3 million of which was originally paid by Benton to RTEC on October 9, 2019, and C$1 million of which was paid by the Clean Air to RTEC on October 9, 2020. The remaining financial obligation to RTEC on behalf of Benton is $1 million due October 9, 2022.In addition, pursuant to the Option Agreement outlining the terms of a definitive share purchase agreement dated January 6, 2020 entered into between Clean Air and Magma Metals Pty Ltd. (\"Magma\"), Clean Air completed the acquisition of 100% of Panoramic Resources Limited's indirect subsidiary, Panoramic PGMs (Canada) Ltd. (\"Pan PGMs\"), which owns the Thunder Bay North Property (the \"TBN Property\"), hosting the Current Lake Deposit. Pan PGM's is now a 100% wholly-owned subsidiary of Clean Air Metals. In consideration of the acquisition of Pan PGMs, Clean Air Metals has also agreed to pay to Magma in equal installments over a three-year period, an aggregate of C$9 million, C$4.5 million of which was paid on closing of the transaction on May 14, 2020, and C$1.5 million of which was paid on May 14, 2021. Two payments of $1.5 million remain by May 13, 2022 and May 13, 2023 respectively....