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Spruce Ridge Resources Announces Binding Letter of Intent with Benton Resources for Option of Newfoundland Property
TORONTO, Aug. 17, 2023 (GLOBE NEWSWIRE) -- Spruce Ridge Resources Ltd. (“Spruce” or the “Company”) (TSXV: SHL) is pleased to announce that it has signed a bindi
About this update from Homeland Nickel Inc
[{"type":"text","content":" TORONTO, Aug. 17, 2023 (GLOBE NEWSWIRE) -- Spruce Ridge Resources Ltd. (“Spruce” or the “Company”) (TSXV: SHL) is pleased to announce that it has signed a binding letter of intent (the “LOI”) with Benton Resources Inc. (“Benton”) (TSXV: BEX) to enter into an option agreement (the “Option Agreement”) whereby Benton can earn an undivided 70% interest in Spruce’s Great Burnt Copper/Gold Property, comprised of six mineral licenses and one mining lease (the “Property”). Highlights of the Option Agreement Under the terms of the Option Agreement, Benton can earn a 70% undivided interest in the Property by: making a $40,000 cash payment to Spruce upon receipt of approval of the TSX Venture Exchange (the “TSXV”) 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 voluntary trading restriction; and 5,000,000 Benton Shares subject to a four-month regulatory trading restriction plus an additional twenty-month voluntary trading restriction completing $2.5 million in exploration expenditures on the Property within 36 months of the date of the LOI, of which $1.0 million must be expended by the first anniversary of the LOI, subject to the right of Benton to accelerate the completion of such expenditures and share issuances. Once a 70% interest in the Property is earned by Benton, the Property will be operated as a participating joint venture. Commenting on the LOI, Steve Balch interim President and CEO, explained that “Spruce is very pleased to be partnering with Benton, a well-know exploration company with deep roots in Newfoundland. This agreement forms part of our plan to diversify our property obligations while acquiring additional critical mineral resources through a combination of expertise and leverage of our security portfolio including our 5.7 million common shares of Canada Nickel Company Inc. (TSXV: CNC). We see this as a good time to expand and diversify our asset base.” The transaction is subject to due diligence by both parties which is ongoing and is subject to approval by the TSXV. Newfoundland Property Update Spruce currently holds six mineral licenses (033214M, 033215M, 027013M, 009881M, and 00...