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Benton and Regency Execute Definitive Agreement on Escape Lake and TBN Project and Provide Update on Regency's Progress
Thunder Bay, Ontario--(Newsfile Corp. - January 10, 2020) - Benton Resources Inc. (TSXV: B...
About this update from Benton Resources, Inc.
[{"type":"text","content":"Benton and Regency Execute Definitive Agreement on Escape Lake and TBN Project and Provide Update on Regency's ProgressThunder Bay, Ontario--(Newsfile Corp. - January 10, 2020) - Benton Resources Inc. (TSXV: BEX) ('Benton' or 'the Company') and Regency Gold Corp. (\"Regency\") (NEX:RAU.H) are pleased to announce that they have signed a definitive agreement (the \"Definitive Agreement\") whereby Regency has acquired an option (the \"Option\") to acquire a 100% right, title and interest in the Escape Lake Property (the \"Escape Lake Property\"), subject to a 1.0% net smelter return royalty to be retained by Rio Tinto Exploration Canada Inc. (\"RTEC\"), from Benton with such Option to be conditional on Benton exercising its pre-existing option to acquire the Escape Lake Property from RTEC under a pre-existing agreement with RTEC (the \"RTEC Agreement\"). Benton also assigned to Regency its rights under a letter of intent previously entered into with Panoramic Resources Inc. (\"PAN\") pursuant to which Benton acquired the right to acquire 100% of PAN's subsidiary Panoramic PGM (Canada) Ltd. (the \"PAN Subsidiary\") which owns the Thunder Bay North Project ( the \"TBN Project\"). Proposed Transaction Upon closing, Regency will have the right to exercise the Option by completing the following:Issuing to Benton an aggregate of 24,615,384 common shares (the \"Regency Consideration Shares\") on the following basis: a) on closing that number of Regency Consideration Shares that represents no more than 19.9% of the number of Regency commons shares then outstanding; and b) the remainder of the Regency Consideration Shares at such time as they can be issued without Benton holding more than 19.9% of the issued capital of Regency;Fulfilling the remaining terms of the RTEC Agreement that Benton has with RTEC on the Escape Lake Property;Entering into and fulfilling the terms of a formal binding purchase and sale agreement with PAN (the \"PAN Agreement\") for the acquisition of the PAN Subsidiary including the payment to PAN of a deposit of $250,000 as a down payment to PAN; andIssuing to Benton a 0.5% net smelter return royalty from production on the Escape Lake Property and a 0.5% net smelter return royalty from production on any mineral claims comprising the TBN Project that a net smelter royalty has not previously been granted.The RTEC Agreem...