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Benton Resources to Spin Out Great Burnt Project to "Accelerate" Its Development

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Benton Resources (BEX.V) is spinning out several mineral projects, including its Great Burnt Project, to privately-held Silverback Metals, the company said on Monday.

If the arrangement closes, Benton shareholders would have a 45% equity stake in the new company, which will be led by Silverback's management team, including Vincent Dube-Bourgeois as executive chair, and exploration geologist Chris Arsenault as chief executive officer, a statement said.

The company believes that having a separately funded early-exploration business will speed up development of the Great Burnt project, which is in south-central Newfoundland and Labrador. Silverback's Sail Pond Project is also in Newfoundland.

A private placement to raise up to C$10 million will also be undertaken, to ensure exploration funds. Benton will retain a 5% shareholding and a 1% uncapped net smelter return (NSR) royalty in certain claims on the project.

The spin-out is expected to be completed in November.

Benton shares

Price: $0.09, Change: $+0.01, Percent Change: +6.25%

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