Nordex Explosives Ltd.
TSX VENTURE : NXX

Nordex Explosives Ltd.

April 29, 2011 14:55 ET

Nordex Explosives Announces it has Optioned Melba Gold Property to Benton Resources Corp.

KIRKLAND LAKE, ONTARIO--(Marketwire - April 29, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA

LES EXPLOSIFS NORDEX LTEE./NORDEX EXPLOSIVES LTD. (TSX VENTURE:NXX) ("Nordex") is pleased to announce that it has entered into a binding letter of intent (the "LOI") with Benton Resources Corp. ("Benton") which provides that Nordex will grant an option (the "Option") to acquire a 100% interest in its Melba gold properties (the "Melba Property") to Benton, subject to a 2% net smelter return royalty.

The property is located approximately 20 km north of Kirkland Lake, Ontario between the Destor Porcupine Fault System and the Kirkland Lake Larder Lake Fault System. An exploration program carried out in the 1930's included trenching, diamond drilling, shaft sinking and underground workings which opened up four gold-bearing quartz calcite veins.

The terms of a four year option of the Melba Properties include the following:

  • upon completion of Benton's due diligence and receipt of regulatory approval for the terms contemplated and signing of the Option Agreement, Benton shall pay to Nordex $30,000 in cash and shall issue 50,000 fully paid and non-assessable common shares in the capital of Benton ("Common Shares") to Nordex;

  • on or prior to the first Anniversary of the Closing Date, Benton shall pay to Nordex a further $30,000 in cash and issue a further 50,000 Common Shares to Nordex;

  • on the second anniversary of the Closing Date, Benton shall pay to Nordex a further $50,000 in cash and issue a further 100,000 Common Shares to Nordex;

  • on the third anniversary of the Closing Date, Benton shall pay to Nordex a further $100,000 in cash and issue a further 200,000 Common Shares to Nordex;

  • on the fourth anniversary of the Closing Date, Benton shall pay a further $240,000 in cash to Nordex and issue a further 300,000 Common Shares to Nordex, which shall constitute the final payment;

  • Benton shall complete a $200,000 work commitment on the Melba Properties, which shall be competed in its entirety on or prior to the first anniversary of the Closing Date; and

  • Benton shall complete a further $300,000 work commitment on the Melba Properties, which shall be competed in its entirety on or prior to the third anniversary of the Closing Date.

The agreement (the "Definitive Agreement") contemplated by both parties will provide for a four year total of $450,000 in cash payable to Nordex (the "Cash Payments") a total of 700,000 common shares of Benton issuable to Nordex (the "Share Issuances") over the four years, as well as a total of $500,000 in work commitment expenditures to be completed on the Melba Property by Benton prior to the third anniversary of the Definitive Agreement effective date (the "Work Commitment").

After the completion of the Cash Payments, the Share Issuances and the Work Commitments, Benton will have earned a 100% interest in the Melba Property, subject to a 2% net smelter return royalty ("NSR") to be granted to Nordex, with a buyback privilege of Benton of 1% of the NSR from Nordex for $1,000,000.

Mr. Jim Taylor, Chief Executive Officer of Nordex stated: "This option agreement with Benton will provide for the exploration of the Melba properties and at the same time will permit Nordex to focus on its core business of manufacturing and distributing explosives to the mining, quarry and road construction industries. We are very excited about this option agreement with Benton and believe they are the ideal company to explore the potential that Nordex believes exists in the Melba properties."

The granting of the Option is subject to the parties entering into the Definitive Agreement, as well as the receipt of all required Board of Director, TSX Venture Exchange and regulatory approvals.

ABOUT NORDEX EXPLOSIVES:

LES EXPLOSIFS NORDEX LTEE./NORDEX EXPLOSIVES LTD. is a manufacturer and distributor of explosives for the mining, quarry and road construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario. Nordex trades on the TSX Venture Exchange under the symbol "NXX".

FORWARD LOOKING STATEMENTS:

Certain information included herein may contain "forward‐looking statements" which reflect the current expectations of management of the Corporation regarding the Corporation's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "seek", "predict", "potential" and similar expressions have been used to identify these forward‐looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Corporation. Forward‐looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Corporation's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including, without limitation, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the "Risk Factors" contained in the Corporation's Management Discussion and Analysis and other public filings (copies of which may be obtained at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and the reader should not place undue reliance on the forward‐looking statements. Although any forward‐looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Corporation cannot assure readers that actual results, performance or achievements will be consistent with these forward‐looking statements, and management's assumptions may prove to be incorrect. These forward‐looking statements are made as of the date of this press release, and, other than as required by law, the Corporation does not intend, and does not assume any obligation, to update or revise these forward‐looking statements, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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