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Benton Resources Corp. (BTC) receives $2 million at an effective 200% premium on exercise of a warrant by Stillwater Mining Company (SWC) to continue with exploration and drilling on the Goodchild Ni-Cu-PGE Project.
THUNDER BAY, ON, July 10 /CNW/ - Benton Resources Corp. ("Benton") is pleased to announce that it...
About this update from Silver Valley Metals Corp
[{"type":"text","content":"\n\n\n\nTHUNDER BAY, ON, July 10 /CNW/ - Benton Resources Corp. ("Benton") is\npleased to announce that it has received $2 million on the exercise of a\nwarrant by Stillwater Mining Company ("SWC") in accordance with the first\nanniversary requirements of the Participation Agreement (the "Agreement")\ndated July 10, 2007 between Benton and SWC whereby SWC has the exclusive right\nto earn up to an initial 50% interest in the Goodchild and South Goodchild\nNi-Cu-PGE projects (collectively the "Goodchild Project"). Pursuant to the\nexercise of the warrant Benton issued 1,290,322 common shares to SWC at an\neffective exercise price of $1.55 representing a 200% premium to the current\nmarket.\n\n\nIn accordance with the Agreement to earn an initial 50% interest in the\nGoodchild Project SWC is required to complete three separate financings over\nthree years into Benton in the aggregate amount of $6 million ($3 million of\nwhich must be spent on the Goodchild Project) as follows:\n\n\na) a $1.6 million private placement (of which $600,000 is to be spent on\n the Goodchild Project) at an issuance price of $1.24 per share, which\n was completed in July, 2007;\n\nb) a $2 million financing (of which $1 million is required to be spent\n on the Goodchild Project) pursuant to the exercise of a warrant\n issued pursuant to the Agreement and having an effective exercise\n price of $1.55 per share, which was completed on July 10, 2008; and\n\nc) a $2.4 million financing (of which $1.4 million is required to be\n spent on the Goodchild Project) to be completed by July 10, 2009\n pursuant to a warrant issued pursuant to the Agreement, such warrant\n to have an exercise price equal to a 50% premium to the trading price\n of Benton's shares at the time of exercise.\n\n\nUpon fulfilling the requirements to earn an initial 50% interest SWC and\nBenton shall form a 50/50 joint venture (the "Joint Venture") for the further\ndevelopment of the Goodchild Project subject to SWC's right to earn a further\n10% interest in the Joint Venture (to 60%) by directly funding an additional\n$4 million in exploration expenditures over the following two year period.\n\n\nProvided it earns a 60% interest in the Joint Venture SWC will have the\nright to earn a further 10% interest in the Joint Venture (to 70%) by direct...