SOURCE: Benton Resources Corp.

May 11, 2007 13:18 ET

Benton Options Goodmorning Lake Uranium Property and Joint Ventures to Grandcru

THUNDER BAY, ON -- (MARKET WIRE) -- May 11, 2007 -- Benton Resources Corp. (TSX-V: BTC) (the "Company") is pleased to announce that, subject to regulatory approval, the Company has entered into an option agreement (the "Agreement") with Ken Fenwick, Don Leishman, Karl Bjorkman, and Don Devereaux (collectively the "Underlying Owners") to purchase a 100% interest (the "Option") in six mining claims located near Innes Lake, Ontario known as the Goodmorning Lake property (the "Property"). The Option is subject to a 3% Net Smelter Royalty in favour of the Underlying Owners, 2% of which can be purchased for $500,000 for every 0.5% purchased (the "NSR").

Under the terms of the Agreement in order to exercise the Option, the Company will (i) pay the Underlying Owners of the Property a total of $90,000 cash over a three year period; (ii) issue, over a three year period, 160,000 common shares of the Company to the Underlying Owners of the Property (or if Benton assigns its rights under the Option to a third party, 160,000 shares of the third party); and (iii) spend a total of $360,000 on exploration expenditures on the Property over a four year period.

Subsequent to entering into the Agreement with the Underlying Owners, Benton entered into an option agreement (the "Grandcru Option Agreement") with Grandcru Resources Corporation ("Grandcru") whereby Grandcru has the option (the "Grandcru Option") to earn a 60% interest in Benton's interest in the Property.

Under the terms of the Grandcru Option Agreement, in order to exercise the Grandcru Option, Grandcru shall (i) pay the Company $8,650 and complete the cash, share and exploration expenditure requirements that Benton has under the Option, including the issuance of 160,000 shares of Grandcru in lieu of the 160,000 shares of Benton otherwise issuable.

Upon Grandcru exercising the Grandcru Option, the Company will have a 40% interest in the Property and Grandcru will have a 60% interest, subject to the NSR.

The Goodmorning Lake Property is contiguous to the western boundary of the South Sibley block, one of three blocks of claims in the Sibley Basin area near Thunder Bay, Ontario, and which Benton has previously optioned to Grandcru. The Property hosts numerous uranium showings in the footwall Archean rocks associated with either quartz-hematite breccia in fault structures or pegmatitic dike swarms. The mineralization consists of uraninite in pegmatite and uraniferous flourapatite in the fault zone. Historical assays completed by the Ontario Geological Survey (OGS) in the 1980s returned values of up to 0.57% U3O8 in grab samples associated with the quartz-hematite breccia. The occurrences are situated in granitic terrain with high background uranium levels. The granite continues eastward beneath the unconformity at the base of the Proterozoic-aged Sibley sediments located immediately adjacent to the uranium occurrences. As the new optioned property is contiguous with the South Sibley claim block of the Benton-Grandcru option /joint venture it will be covered by the upcoming airborne survey scheduled to start immediately.

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
    Benton Resources Corp.
    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