The Prospector News

Benton to Sell Cape Ray for $5.25 Million in Cash and Shares

You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article

Benton to Sell Cape Ray for $5.25 Million in Cash and Shares






Benton Resources Inc. (TSX-V: BEX) is pleased to announce that it has signed a binding Term Sheet with Matador Mining Limited (ASX: MZZ) of Western Australia for the sale of its 80% interest in the four main Cape Ray Deposits (held in an 80%-Benton 20%-Nordmin Engineering Limited joint venture) as well as a 100% interest in its remaining land positions held in the Cape Ray mining belt, which includes the Isle aux Morts and Big Pond deposits, for a cash payment of A$3.25 million (A = Australian dollars) and 8,000,000 common shares of Matador based on an underlying value of A$0.25/share for a total consideration of A$5.25 million. The Company will also receive 833,333 options exercisable at a price of A$0.30 a share for a period of 2 years following the date of issuance.



Benton has operated under an exclusivity agreement with Matador Capital Pty Ltd for the past month-and-a-half, pursuant to which it has received A$70,000 in cash from Matador Capital and will continue to receive A$50,000 per month from Matador until all conditions in the Agreement are satisfied. It is also agreed to by both parties that any payments made by Matador during the exclusivity period will be deducted from the A$3.25 million cash payment. Should Matador not complete its obligations under the Agreement, the exclusivity payments are non-refundable and will be retained by the Company.



In order to complete the terms of the Agreement, Matador must:


  • obtain shareholder approval for the issuance of the 8 million Consideration Shares;
  • obtain shareholder approval to issue shares in order to complete a capital raise in the amount of not less than A$5 million at A$0.25 per share and complete the capital raise;
  • obtain regulatory approval from the Australian Securities Exchange for the terms of the Agreement; and
  • pay to Benton the A$3.25million in cash and issue 8 million Consideration Shares of Matador as well as the 833,333 options.



Completion of the Agreement is to occur no later than 3 months from the date of its execution or may be extended should both parties mutually agree. The agreement is also subject to Benton receiving regulatory approval from the TSX Venture Exchange.



Once Matador completes the above-noted payments, Benton will transfer title and its interest in all mineral licenses contained within the Agreement. In addition, Benton will retain a 1% NSR on its 100% owned Cape Ray mineral licenses, more specifically those licenses that contain no other underlying NSR’s that are included in the Agreement. Matador will have the right to buy back 50% of this NSR by paying to Benton A$1 million. Matador will assume all other underlying NSR’s associated with the 04/41/51/Windowglass Hill/Big Pond/Isle aux Morts deposit claim packages. Benton has also agreed to enter into a voluntary escrow agreement for 75% of the Consideration Shares whereby Benton will not trade these shares for the first 6 months following their issuance. Benton also agrees not to trade the remaining 25% of the Consideration Shares unless such trading is conducted through a controlled sale arranged by Matador’s appointed broker or as otherwise agreed to by Benton and Matador.



Benton will continue to keep shareholders updated as it progresses through the terms of the Agreement and will work with Matador to complete a formal definitive agreement consistent with the terms contained within the Term Sheet.



About Benton Resources Inc.


Benton Resources Inc is a well-funded Canadian-based project generator with a diversified property portfolio in Gold-Silver, Nickel, Copper, and Platinum group elements.



Benton holds multiple high grade gold and Base Metal projects available for option which can be viewed on the company’s web site. Most projects have an up to date 43-101 reports available.


Posted March 26, 2018

Share this news article


MAS Gold Announces Closing on the First Tranche of its Private Placement Financing

MAS Gold Corp. (TSX-V: MAS) is pleased to announce the closing of... READ MORE

May 20, 2022

Golden Arrow Reports Results of Drilling at Tierra Dorada Gold Project, Paraguay, and Provides Exploration Update

Golden Arrow Resources Corporation (TSX-V: GRG) (FSE: G6A) (OTCQ... READ MORE

May 20, 2022

NorZinc Announces RCF US$6 Million Bridge Loan to Fund 2022 Work Program at Prairie Creek Project

NorZinc Ltd. (TSX: NZC) (OTCQB: NORZF) is pleased to announce the... READ MORE

May 20, 2022

Enduro Announces Closing of $10 million Private Placement

Enduro Metals Corporation (TSX-V: ENDR) (OTCQB: ENDMF) is pleased... READ MORE

May 20, 2022

Eloro Resources Closes C$9.775 Million Bought Deal Financing

Eloro Resources Ltd. (TSX-V: ELO) (OTCQX: ELRRF) (FSE: P2QM) is p... READ MORE

May 20, 2022

We acknowledge the [financial] support of the Government of Canada.

Government of Canada Supported
Copyright 2022 The Prospector News