Benton Announces Non-Brokered $2.4 Million Financing with Investment by Eric Sprott
Thunder Bay, Ontario--(Newsfile Corp. - March 3, 2022) - Benton Resources Inc. (TSXV: BEX) ("Benton" or the "Company") is pleased to announce that, subject to all regulatory approvals, the Company intends to complete a non-brokered private placement of flow-through units and non-flow-through units (the "Private Placement") for combined aggregate gross proceeds of up to $2.4 million. The Private Placement is expected to close on or before March 25, 2022.
On closing the Company will issue 6,250,000 flow-through shares units ("FT Units") at a price of $0.2275 per FT Unit, for gross proceeds of $1,421,875. Each FT Unit consists of one common share of the Company and one common share purchase warrant (a "Warrant"), each Warrant being exercisable for an additional common share of the Company, each of which will not qualify as a flow-through share, at an exercise price of $0.20 for 24 months from the date of issue. The FT Units will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).
On closing the Company will also issue 6,250,000 non-flow-through units ("Units") at a price of $0.16 per Unit for aggregate proceeds of up to $1,000,000. Each Unit consists of one common share and one Warrant, each Warrant being exercisable for an additional common share of the Company at an exercise price of $0.20 for 24 months form the date of issue.
As a result of the Private Placement, Eric Sprott will become Benton's largest shareholder, adding 12.5M shares and 12.5M warrants to his current position of 10.0M shares and 5.0M warrants.
All securities issued pursuant to the Private Placement will be subject to a four-month and a day hold period.
In connection with the Private Placement, the Company may pay finders' fees in cash or securities or a combination of both, as permitted by the policies of the TSX Venture Exchange. The Private Placement is subject to approval by the TSX Venture Exchange.
The Company will use an amount equal to the gross proceeds received by the Company from the sale of the FT Units, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") on or before December 31, 2023, and to renounce all the Qualifying Expenditures in favour of the subscribers of the FT Units effective December 31, 2022. The proceeds from the sale of the Units will be used to advance Benton's various exploration projects, and for working capital purposes.
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, Lithium, and Platinum group elements. Benton holds multiple high-grade projects available for option that can be viewed on the Company's website. Most projects have an up-to-date NI 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
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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."
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