Benton Resources Inc. ("Benton") and Metals Creek Resources Corp. ("Metals Creek") are pleased to announce that they have jointly executed a letter of intent (the "Agreement") with a Newfoundland prospector (the "Vendor") pursuant to which Metals Creek and Benton have been granted the option to acquire a 100% interest (50% each) in 22 claim units (the "Property") located in the Victoria Lake area, Central Newfoundland.
Under the Agreement, Benton and Metals Creek will make staged payments to the Vendor totaling $45,000 ($5,000 on signing) and 425,000 common shares (50,000 on signing) over a three year period. All cash and share payments will be split 50% Benton and 50% Metals Creek. The Vendor will retain a 2% net smelter return ("NSR") on the Property. Benton and Metals Creek will have the right to buy back 1% of the NSR for $1,000,000. This transaction is subject to TSX Venture Exchange approval as well as a due diligence period expiring June 15, 2017.
The optioned property will be folded into the Staghorn Project in which Benton is earning a 60% interest. The Staghorn Project covers a portion of the regional Cape Ray Fault Zone that hosts a number of significant gold deposits including Marathon Gold's Valentine Lake deposit, located 30km to the northeast and Benton's Cape Ray gold deposits approximately 100 km to the southwest. The optioned property is contiguous with the northeast boundary of the Staghorn Gold Project. Recent prospecting by the Vendor resulted in the discovery of several areas of mineralized outcrop and float along a 1.6 kilometer strike length on the Property. Selective grab samples submitted by the vendor returned gold values up to 18.86 grams per tonne ("gpt"), 61gpt silver, 1.7% copper, 0.59% lead, 0.15% antimony, and 2.76% zinc (not all in same sample). Most of the gold-bearing samples are described as quartz-carbonate material with varying amounts of pyrite, chalcopyrite, arsenopyrite and galena. Highlights from the most recent samples collected from an outcropping area of a gossanous felsic volcanic unit cut by numerous quartz veins where three of these samples returned assays of 18gpt, 7gpt and 1gpt gold. The mineralization appears to be related to an east-west fault that traverses the property and may be a splay off the auriferous Cape Ray Fault system
In addition, Benton and Metals Creek have staked an additional 30 claim units to the north and west of the optioned claims.
Benton and Metals Creek plan on a completing a property review once spring breakup is over and weather conditions allow for additional sampling. This new acquisition enhances the value of the Staghorn Gold Project and adds a number of new untested gold targets to the project.