Benton Resources Corp. (BTC, BTC-WT) and Teck Cominco Limited join forces to look for nickel in Labrador
Wednesday February 28, 9:00 am ET
biz.yahoo.com
THUNDER BAY, ON, Feb. 28 /CNW/ - Benton Resources Corp. ("Benton") is pleased to announce that it has entered into a Participation Agreement (the "Agreement") with Teck Cominco Limited ("Teck Cominco") whereby Benton and Teck Cominco will form the King Lake project (the "Project") by amalgamating and jointly exploring certain of their land positions in Labrador. The Project is located approximately 60 km north of the world class Voisey's Bay copper-nickel deposit and consists of 488 claim units held by Benton, (previously known as the NBK property), and 266 claim units held by Teck Cominco. The King Lake Project has seen little exploration in the past however the combined claims encompass many documented showings grading up to 6.8% copper and 1.9% nickel. Benton and Teck Cominco are planning an initial airborne electromagnetic and magnetic geophysical survey to identify possible sulfide bodies which may host economic grades of nickel and copper. A field program will commence in the spring as soon as the snow disappears. Benton management is excited to have joined forces with Teck Cominco on this project and look forward to the search for a major ore-body.
The specific terms of the Agreement are as follows:
Benton and Teck Cominco will contribute their respective properties and
will each own an initial 50% interest in the Project.
Teck Cominco will complete a $700,000 financing into Benton priced at
$0.70 per share.
Benton will fund the initial $600,000 in exploration.
Teck Cominco can earn an additional 10% interest (to take their interest
to 60%) by incurring expenditures of $4 million by December 31, 2010.
Teck Cominco can earn a further 10% interest (to bring its interest to
70%) by incurring a further $7 million in exploration by December 31,
2013.
Once Teck Cominco earns the additional interests or elects not to earn
the additional interests, Teck Cominco and Benton will form a joint
venture (J.V.) based on the respective interests of the parties at the
point that Teck Cominco elects to cease to increase its interest; and
after the J.V is formed, if either party dilutes to a 10% interest, such
interest shall automatically be converted to a 2% Net Smelter Royalty
(NSR).
Teck Cominco will be the initial operator of all programs on the Project.
Benton is extremely pleased to have entered into this Agreement with Teck Cominco which reflects the strength of Benton's team and the large scale potential of Benton's projects.
Benton will keep their shareholders updated on developments at the Project as exploration moves forward.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Corp., is the qualified person responsible for this release.
On behalf of the Board of Directors of Benton Resources Corp.
"Stephen Stares"
Stephen Stares, President
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Forward-looking statements in this release are made pursuant
to the safe harbor provisions of the Private Securities.
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For further information
Stephen Stares, 3290 Willard Ave, Thunder Bay, Ont., P7E 6J7, Phone (807) 475-7474, Fax (807) 475-7200, www.bentonresources.ca
Source: Benton Resources Corp. |
