Press Release, Benton Receives Conditional Exchange Approval and Closes $2.25 million Flow-Through Private Placement, With Participation from Mr. Eric Sprott
Thunder Bay, Ontario--(Newsfile Corp. - May 31, 2021) - Benton Resources Inc. (TSXV: BEX) ("Benton" or "the Company") announces that it has closed their previously announced non-brokered flow-through private placement of units (the "Private Placement") (see Company news release dated May 14, 2021).
The Company will issue 11,250,000 flow-through units at a price of $0.20 per unit with each unit consisting of 1 flow-through common share of the Company and one-half of one common share purchase warrant, with each whole warrant entitling the holder to acquire an additional common share of the Company at $0.25 for 36 months from the date of issue, for aggregate gross proceeds of $2,250,000. Mr. Eric Sprott has subscribed for $2,000,000 into the private placement.
Eric Sprott acquired 10,000,000 flow-through units under the offering for approximate consideration of $2,000,000. Subsequent to the closing of the offering, Mr. Sprott beneficially owns or controls 10,000,000 common shares of the Company and 5,000,000 share purchase warrants, representing approximately 8.6% of the issued and outstanding common shares of the company on a non-diluted basis and approximately 12.4% of the issued and outstanding common shares of the company on a partially diluted basis assuming exercise of the warrants acquired hereunder and forming part of the units. Prior to the offering, Mr. Sprott did not beneficially own or control any securities of the Company.
The units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Benton Resources, including on the open market or through private acquisitions, or sell securities of the company, including on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.
A copy of Mr. Sprott's early warning report will appear on Benton's profile on SEDAR and may also be obtained by calling Mr. Sprott's office at 416-945-3294 (200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J1).
The gross proceeds from the sale of flow-through units will be used for exploration expenses on the Company's mining projects as permitted under the Income Tax Act (Canada) to qualify as Canadian Exploration Expenses ("CEE") as defined in the Tax Act.
In connection with the private placement, the Company will pay a finders' fee consisting of units and compensation warrants. Each unit will consist of one common share of the Company and one-half of one common share purchase warrant, each whole warrant entitling the holder to acquire an additional common share of the Company at $0.25 for 36 months from the date of issuance. Each compensation warrant will entitle the holder to acquire a unit for $0.20 for a period of 36 months from the date of issuance. All securities issued pursuant to the private placement will be subject to a four-month hold period.
On behalf of the Board of Directors of Benton Resources Inc.,
Stephen Stares, President
About Benton Resources Inc.
Benton Resources is a well-funded Canadian-based project generator with a diversified property portfolio in Gold, Silver, Nickel, Copper, and Platinum group elements. Benton holds multiple high-grade projects available for option which can be viewed on the Company's website. Most projects have an up-to-date 43-101 Report available.
Parties interested in seeking more information about properties available for option can contact Mr. Stares at the number below.
For further information, please contact:
Stephen Stares, President & CEO
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x251
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.