Freehold Royalties Ltd. press release
Drill program completed on Saganaga gold property and adjacent ground optioned
TSX - Toronto Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Potash · Canada
THUNDER BAY, ON, Dec. 19 /CNW/ - Benton Resources Corp. ("Benton") is pleased to announce that it has been notified by its partner Teck Cominco Limited ("Teck Cominco") that a 2000 metre drill program has been completed on the Saganaga gold project and that the core samples have been submitted to Global Discovery Labs (wholly owned by Teck Cominco) in Vancouver for analysis.
Benton and Teck Cominco have also entered into a new agreement with respect to Benton's Q-9 property, which hosts the strike extension of the Saganaga gold property both to the northeast and southwest. Under the terms of the agreement Teck Cominco can earn up to a 70% interest in the Q-9 property by spending $8,000,000 by December 31, 2013 and making certain commitments to Benton over the duration of the agreement.
The specific terms of the agreement are as follows:
a) to earn a 51% interest, Teck Cominco must complete aggregate exploration expenditures of $400,000 by December 31, 2007; $1,000,000 by December 31, 2008; and $2,000,000 by December 31, 2009. In addition Teck Cominco must complete a $250,000 equity financing in Benton at a price of $0.60 per unit, each unit being comprised of one common share plus one warrant exercisable at $0.70 for a period of 24 months; b) to earn a further 9% interest (to bring its interest to 60%), Teck Cominco must spend a further $2,000,000 on exploration by December 31, 2011; c) to earn a further 10% (to bring its total interest up to 70%) Teck Cominco, must spend a further $4,000,000 on exploration by December 31, 2013; and d) provided Teck Cominco earns the initial 51% interest, after Teck Cominco ceases to sole fund expenditures, Teck Cominco and Benton will form a joint venture based on the respective interests of the parties at that stage.
The Saganaga and Q-9 properties are host to numerous high-grade gold zones such as the Star Zone on Saganaga, where channel sampling by Benton returned 17 g/t gold over 7 metres. Historical sampling by Band-Ore Resources Ltd. on the Q-9 project included a small 422-kilogram bulk sample that returned a weighted average grade of 356.3 g/t gold and 850 g/t silver. Benton looks forward to the results of Teck Cominco's first phase diamond drill program at Saganaga. The assay results will be made available to the public as they are received.
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"
Stephen Stares, President
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Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities.