BENTON RECEIVES CONDITIONAL EXCHANGE APPROVAL AND CLOSES $2.25 MILLION FLOW-THROUGH PRIVATE PLACEMENT, WITH PARTICIPATION FROM MR. ERIC SPROTT

Thunder Bay ON, May 31, 2021 – Benton Resources Inc. (‘Benton’ or ‘the Company’) (TSXV: BEX) 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.

 

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

Phone: 807-475-7474

Email: sstares@bentonresources.ca

 

CHF Capital Markets

Cathy Hume, CEO

Phone: 416-868-1079 x231

Email: cathy@chfir.com