Business
Benton's partner initiates drill program on the BCF property in Marathon
THUNDER BAY, ON, March 26 /CNW/ - Benton Resources Corp. ("Benton" or the "Company") is pleased t...
About this update from Silver Valley Metals Corp
[{"type":"text","content":"\n\n\n\nTHUNDER BAY, ON, March 26 /CNW/ - Benton Resources Corp. ("Benton" or the\n"Company") is pleased to report that the Company has been notified by its\njoint venture partner Marathon PGM Corporation ("MAR") that diamond drilling\nhas started on Benton's BCF (formerly east part of the Bermuda) property north\nof the Marathon Cu-PGE Deposit. Benton and MAR have recently entered into a\njoint venture agreement to develop the project. The drilling will initially\nconcentrate on defining the northern extension of the Marathon Deposit and\nincorporating the results into MAR's resource estimates. MAR has indicated\nthat 8,000 to 10,000 metres of drilling will be completed over the next few\nmonths. Results of the drilling will be released as they are received and\ncompiled.\n\n\nUnder the terms of the OJVA, MAR has the option to earn a 60%\nparticipating interest in the BCF Property by (i) issuing Benton 120,000\ncommon shares on signing of the OJVA, subject to regulatory approval; (ii)\ncompleting work expenditures of $1.5 million per year during the first four\nyears of the OJVA and an additional $2 million on or before the fifth\nanniversary and; (iii) making cash payments of $500,000 per year on or before\nthe anniversary date of the OJVA for the first three years (for a total\n$1.5 million).\n\n\nDuring the earn-in period, all work will be supervised and carried out by\nMAR. After MAR has issued the 120,000 shares, made the $1.5 million cash\npayments and spent the $8 million, Marathon will have "earned in" to 60% of\nthe JV.\n\n\nDuring the earn-in period MAR may mine up to 200 metres north of its\nproperty into the BCF Property. If Marathon mines any part of the BCF Property\nprior to the JV, MAR will receive all revenue and (i) pay all costs, (ii) pay\nall royalties due from the BCF Property, and (iii) pay an additional 2% NSR\nroyalty to Benton.\n\n\nAfter the JV is formed, MAR will be operator and any ore that is\ndiscovered on the BCF property will be mined and processed by Marathon at its\nfacilities. Under the JV agreement, Marathon will charge the JV for all\ndirect, indirect and overhead costs including a charge to recover its capital\ncosts as well as a 4% management fee.\n\n\nClinton Barr (P.Geo.), V.P. Exploration for Benton Resources Corp., is\nthe qualified person respon...