Business
Benton Receives Conditional Regulatory Approval for Great Burnt Copper-Gold Option and Expands Disclosure of Outstanding Net Smelter Returns
Thunder Bay, Ontario--(Newsfile Corp. - August 30, 2023) - Benton Resources Inc. (TSXV: BEX) ("Be...
About this update from Benton Resources, Inc.
[{"type":"text","content":"Benton Receives Conditional Regulatory Approval for Great Burnt Copper-Gold Option and Expands Disclosure of Outstanding Net Smelter ReturnsThunder Bay, Ontario--(Newsfile Corp. - August 30, 2023) - Benton Resources Inc. (TSXV: BEX) (\"Benton\" or the \"Company\") announced on August 17, 2023 that it entered into a binding letter of intent (\"LOI\") with Spruce Ridge Resources Ltd. (TSXV: SHL) (\"Spruce\"), whereby Benton can earn an undivided 70% interest in Spruce's Newfoundland properties (the \"Property\") including the Great Burnt Copper deposit and South Pond Gold and Copper zones (the \"Option\"). The Company has received conditional approval by the TSX Venture Exchange (the \"Exchange\") for the Option, pending this disclosure of the Net Smelter Return (\"NSR\") from previous operators/owners of the Property. Under previous agreements, there exists a 2% NSR royalty in favour of Glencore (as a successor to Noranda) on mining lease ML211 and part of Exploration Licence 21732M that was part of former Exploration Licence 10210M, which covers the area of the Great Burnt Copper Deposit. In addition, if commercial production commences from this lease, then a cash payment of $1,000,000 or the issuance of common shares representing equivalent value must be made to Glencore.Under the agreement between Pavey Ark and Spruce, Pavey Ark will retain a 0.5% NSR royalty on any production from Mining Lease ML211 and that part of Exploration Licence 21732M that was part of former Exploration Licence 10210M. Pavey Ark will retain a 2% NSR royalty on any production from the Mineral Exploration Licenses numbered 6682M, 6683M, 9881M, 20961M and that part of 21732M that was not part of former Exploration Licence 10210M. Highlights of the Option Under the terms of the Option, Benton can earn a 70% undivided interest in the Property by:making a $40,000 cash payment to Spruce upon receipt of final Exchange approval;issuing to Spruce 15 million common shares in the capital of Benton (\"Benton Shares\") as follows:5,000,000 Benton Shares subject to a four-month regulatory trading restriction;5,000,000 Benton Shares subject to a four-month regulatory trading restriction plus an additional eight-month trading restriction;5,000,000 Benton Shares subject to a four-month regulatory trading restriction plus an additional twenty-month trading restriction; ...