Benton Resources Corp.

Benton Resources Corp.

December 07, 2010 11:44 ET

Benton Receives $8.26 Million in Cash and Shares on Closing of Marathon Takeover Transaction

THUNDER BAY, ONTARIO--(Marketwire - Dec. 7, 2010) - Benton Resources Corp. ("Benton" or "the Company") (TSX VENTURE:BTC) is pleased to report that pursuant to the closing of the acquisition of Marathon PGM Corporation ("Marathon") (TSX:MAR) by Stillwater Mining Company ("Stillwater") (NYSE:SWC), Benton received cash proceeds amounting to $2,777,875 ($1.775 for each Marathon share held) in addition to 175,280 common shares of Stillwater (based on the acquisition ratio of 0.112 Stillwater shares for every Marathon share held) worth approximately $3.96 million (based on December 6, 2010 Stillwater closing price and closing exchange rate) for the Company's 1,565,000 shares of Marathon. In addition, Benton received 782,500 shares (one half share for every full Marathon share held) of Marathon Gold Corp. (TSX:MOZ) (a new public company created as part of the Stillwater acquisition which holds the gold exploration assets of Marathon) worth approximately $1.52 million (based on December 6, 2010 closing price) which commenced trading at market open on December 3, 2010. Stillwater acquired all of the outstanding shares of Marathon pursuant to a plan of arrangement under the Canada Business Corporations Act. The transaction was previously approved by 99.98 per cent of the Marathon shareholders who voted in respect of the arrangement, was subsequently approved by the Ontario Superior Court of Justice and then received ministerial approval under the Investment Canada Act. A portion of Benton's Marathon PGM shares (300,000) were still subject to the original voting trust agreement and as a result will be handled in a separate tranche. The proceeds on these shares are still outstanding at this time but are expected to be received according to the Stillwater acquisition ratio above very shortly.

Benton received the majority of its Marathon shares in March 2009 when it sold a portion of its Bermuda land package consisting of one mining lease (the Bamoos lease) and an adjacent claim block covering a total of 329 hectares for 1.5 million Marathon shares, $300,000 cash and a 2% net smelter returns royalty (see Benton PR dated March 25, 2009).

Stephen Stares, Benton's President and CEO commented, "We are very pleased for our shareholders as this transaction has yielded substantial value for Benton in the form of both a cash injection as well as highly prospective Stillwater shares with tremendous upside potential, all at no dilution to our shareholders. In addition, we are pleased to have a stake in Marathon Gold Corp. as the Marathon team has made great achievements thus far in exploring their gold property portfolio. We look forward to benefiting from the advancement of both Marathon Gold and Stillwater moving forward and wish both teams much success."

Benton is a Canadian based junior with multiple joint ventures and a diversified property portfolio in Gold, Nickel, Copper, and Platinum group elements. The Company currently has approximately $9.4 million in cash, owns 38.1 million shares and 19.1 million warrants in Coro Mining Corp. (TSX:COP), holds 782,500 shares in Marathon Gold Corp. (TSX:MOZ), holds 1.6 million shares in Puget Ventures (TSX VENTURE:PVS), holds 815,000 shares of Bell Copper Corporation (TSX VENTURE:BCU) and retains a 2% Net Smelter Royalty on the northern portion of the Marathon PGM deposit.

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, President

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.


Contact Information

  • Benton Resources Corp.
    Stephen Stares
    3250 Arthur St. West, RR #2, Thunder Bay, ON P7C 4V1
    (807) 475-7474
    (807) 475-7200 (FAX)
    Investor Relations
    Clair Calvert
    (204) 799-2086