SOURCE: Benton Resources Corp.

February 28, 2007 08:30 ET

Benton Resources Corp. (BTC, BTC-WT) and Teck Cominco Limited Join Forces to Look for Nickel in Labrador

THUNDER BAY, ON -- (MARKET WIRE) -- February 28, 2007 -- Benton Resources Corp. (TSX-V: BTC) ("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 looks 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
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. 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, Ont.
    P7E 6J7
    Phone (807)475-7474
    Fax (807)475-7200
    www.bentonresources.ca