Change in 2012 agreement with Cornerstone Capital subject to regulatory approval
A rock sample from Cape Ray — Photo by Ashley Fitzpatrick/The Telegram
Subject to regulatory approval, Ontario-based junior mining company Benton Resources is now in a position to take over 100 per cent interest in the Cape Ray gold project in southwest Newfoundland.
Interest will be passed over from Cornerstone Capital Resources, based out of Mount Pearl, under an amendment to a December 2012 agreement between the two companies.
Benton will offer a $200,000 cash payment and issuing 350,000 common shares in exchange for the 100 per cent claim.
“Benton is pleased to have completed this transaction with Cornerstone as it allows Benton to explore the project without timelines and strenuous commitments in the current volatile markets,” stated a press release from Benton’s board of directors.
Cornerstone has a stake in Benton and, despite the sale of interest in Cape Ray, will still be able to receive some benefit from any success in the mining project.
In its own statement, Cornerstone leads have also announced their company has issued 50,000 incentive stock options “to a consultant to the Company who also serves as an officer of one of Cornerstone's subsidiary companies” in order to obtain common shares at a price of $0.10 per share. The options have a five-year term.
Cornerstone holds interest in properties in Chile and Ecuador in addition to Newfoundland and Labrador, Canada.
In Newfoundland, in addition to the Cape Ray prospect, Cornerstone has spent millions on the Little Deer copper project — a 50-50 joint venture with Thundermin Resources. Thundermin is the project operator.
Benton Resources holds interest in a collection of projects in Ontario and one project in San Bernardino County, California, in addition to its work in Newfoundland and Labrador.
Benton has worked with Buchans Minerals on the Goldquest project in southwest Newfoundland. In addition, the company has worked in partnership with Teck on early works on the Kingurutik Lake project, about 60 kilometres north of Voisey’s Bay.