SOURCE: Benton Resources Corp.

January 05, 2007 16:14 ET

Benton Closes Financing of $252,000

THUNDER BAY, ON -- (MARKET WIRE) -- January 5, 2007 -- Benton Resources Corp. (TSX-V: BTC) ("Benton") is pleased to announce that it has received private placement funds totaling $252,000 priced at $0.60 per unit from Teck Cominco Limited ("Teck Cominco") in respect to the recently announced option and joint venture agreement between Teck Cominco and Benton regarding the Q-9 project.

Teck Cominco can earn up to a 70% interest in the Q-9 property by spending $8,000,000 by December 31, 2013 and making certain commitments to Benton over the duration of the agreement. The Q-9 property lies along strike of the Saganaga Gold project on which Teck Cominco and Benton have an existing option and joint venture relationship (P.R July 17, 2006) and where 2000 metres of diamond drilling has recently been completed.

The Saganaga and Q-9 properties are host to numerous high-grade gold zones such as the Star Zone on Saganaga, where channel sampling by Benton returned 17 g/t gold over 7 metres. Historical sampling by Band-Ore Resources Ltd. on the Q-9 project included a small 422-kilogram bulk sample that returned a weighted average grade of 356.3 g/t gold and 850 g/t silver. Benton looks forward to the results of Teck Cominco's first phase diamond drill program at Saganaga. The assay results will be made available to the public as they are received.

The specific terms of the agreement on the Q-9 property are as follows:

a) to earn a 51% interest, Teck Cominco must complete aggregate exploration expenditures of $400,000 by December 31, 2007; $1,000,000 by December 31, 2008; and $2,000,000 by December 31, 2009. In addition Teck Cominco must complete a $252,000 equity financing in Benton at a price of $0.60 per unit, each unit being comprised of one common share plus one warrant exercisable at $0.70 for a period of 24 months;

b) to earn a further 9% interest (to bring its interest to 60%), Teck Cominco must spend a further $2,000,000 on exploration by December 31, 2011;

c) to earn a further 10% (to bring its total interest up to 70%) Teck Cominco, must spend a further $4,000,000 on exploration by December 31, 2013; and

d) provided Teck Cominco earns the initial 51% interest, after Teck Cominco ceases to sole fund expenditures, Teck Cominco and Benton will form a joint venture based on the respective interests of the parties at that stage.

Benton's management is excited to have Teck Cominco explore the entire strike extent of these large under-explored gold properties. Teck Cominco will now have the right to earn 70% interest in both the Saganaga and Q-9 gold properties by spending a total of $16,000,000.

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

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities.

Contact Information

  • For further information contact Stephen Stares
    3290 Willard Ave
    Thunder Bay, Ontario, P7E 6J7
    Phone (807) 475-7474
    Fax (807) 475-7200

    Investor relations:
    In Canada:
    First Canadian Capital
    Daniel Boase
    Phone (416) 742-5600
    Fax (416) 742-6410

    In U.S.A:
    The Windward Agency
    Kelly Boatright
    Phone (704) 588-8600