Benton Resources Corp.

Benton Resources Corp.

December 16, 2010 08:00 ET

Benton Sells Bermuda Property to Stillwater Mining for $14 Million

THUNDER BAY, ONTARIO--(Marketwire - Dec. 16, 2010) - Benton Resources Corp. ("Benton" or "the Company") (TSX VENTURE:BTC) ("Benton") and Stillwater Mining Company ("Stillwater") (NYSE:SWC), a company incorporated under the laws of the State of Delaware having its principal office in Billings, Montana have entered into an asset purchase and sale agreement whereby Stillwater has agreed to purchase Benton's 100% owned Bermuda property (the "Property") including Benton's 2% NSR on the Bamoos property for the sum of $14,000,000 in cash and Stillwater shares on a 50%-50% basis. The Company will retain a 1% NSR on the Property which will take effect should more than 2.5 million ounces of Pd+Pt+Au combined be produced from the Property. As a result of the agreement with Stillwater, the Company has cancelled its previously announced plans (press release dated April 14, 2010) to spin out the Bermuda Property into a new publicly traded company. By having Stillwater purchase the Bermuda Property at this stage the Company is able to immediately monetize its value rather than having to go through a lengthy exploration, development and permitting process with all of the associated risks. The $14 million of cash and Stillwater shares received on the sale of the Bermuda Property is in addition to the approximate $7.76 million in cash, Stillwater shares and Marathon Gold Corp. shares (TSX:MOZ) (based on December 15, 2010 closing prices) recently received through the sale of Benton's approximate 5% ownership in Marathon PGM Corp. that has also been acquired by Stillwater (see Marathon PGM Corp. press release dated September 17, 2010) taking total gross proceeds to an estimated $21.76 million for Benton's land position in the Coldwell Complex.

Stephen Stares, Company President/CEO stated: "This is a great opportunity for Benton and its shareholders. The Company will be holding more than $74.6 million in cash and equities allowing more flexibility to pursue other prospective assets while simultaneously advancing existing and new grassroots projects inexpensively. Recent generative efforts have resulted in the acquisition, through staking, of several new grassroots gold projects and we are excited at the opportunity these represent. In addition, Benton will retain potential long term benefits through the NSR on the Bermuda property and tremendous upside potential from our large equity holdings in companies, such as Coro Mining Corp., currently awaiting the government's acceptance of its Environmental Impact Study on its San Jorge project in Argentina."

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 $16.3 million in cash, owns 38.1 million shares and 19.1 million warrants in Coro Mining Corp. (TSX:COP), holds 523,053 shares of Stillwater Mining Company (NYSE:SWC), holds 782,500 million shares in Marathon Gold Corp. (TSX:MOZ), holds 1.6 million shares in Puget Ventures (TSX VENTURE:PVS), and holds 815,000 shares of Bell Copper Corporation (TSX VENTURE:BCU).

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
    (807) 475-7474
    (807) 475-7200 (FAX)
    Benton Resources Corp.
    Clair Calvert
    Investor Relations
    (204) 799-2086