Business
Benton and Panoramic Agree to Amended Terms for Benton's Purchase of the Thunder Bay North PGM Project
Thunder Bay, Ontario--(Newsfile Corp. - September 3, 2019) - Benton Resources Inc. (TSXV: ...
About this update from Benton Resources, Inc.
[{"type":"text","content":"Benton and Panoramic Agree to Amended Terms for Benton's Purchase of the Thunder Bay North PGM ProjectThunder Bay, Ontario--(Newsfile Corp. - September 3, 2019) - Benton Resources Inc. (TSXV: BEX) ('Benton' or 'the Company') announced today that it has amended (the 'Amending Agreement') the binding purchase agreement signed on July 2, 2019 with Panoramic Resources Inc. ('Panoramic') (the 'PAN Agreement')(see NR dated July 2, 2019). Under the PAN Agreement, Benton has agreed to acquire all of Panoramic's shares in its wholly-owned subsidiary, Panoramic PGMs Canada Ltd., which holds the Thunder Bay North PGM project ('TBN') for C$9.0 million in cash (the \"Purchase Price\").Amended Payment Terms Benton will now pay the C$9 million Purchase Price over four installments, as set out below:C$4.5 million on the completion of the PAN Agreement;C$1.5 million on the first anniversary of the completion of the PAN Agreement;C$1.5 million on the second anniversary of the completion of the PAN Agreement; andC$1.5 million on the third anniversary of the PAN Agreement.SecurityThe Company will pledge security for the three deferred payments by providing a first registered security over the TBN PGM Project Property and the shares of Panoramic PGMs Canada Ltd to Panoramic.Conditions Precedent to Completion of the Sale Completion of the sale of Panoramic PGMs Canada Ltd. to Benton is still subject to the following conditions precedent: signing a Definitive Agreement;receipt of any necessary regulatory approvals and shareholder approvals required by Benton;Benton raising sufficient finance to fund the Purchase Price;Rio Tinto Exploration Canada Inc. (\"RTEC\") and Benton completing the acquisition by Benton of the Escape Lake Project from RTEC (see NR dated July 2, 2019); andPanoramic PGMs Canada Ltd. being released from its future obligations under the Earn-in with Option to Joint Venture Agreement (\"EJVA\") with RTEC that was signed in July 2014. Other Terms Definitive Agreement - the Amending Agreement states that both parties will complete and sign the Definitive Agreement within 30 days of the date of the Amending Agreement. If the Definitive Agreement is not signed within 30 days of the date of the Amending Agreement, the Amending Agreement will terminate. Panoramic can extend the 30-day period at its discretion; andAll other terms of the Ame...