Benton advised of Coro's Letter of Intent on Berta project and receives
THUNDER BAY, ON, May 8, 2013 /CNW/ - Benton Capital Corp. (TSXV: BTC)
("Benton") is pleased to provide the following press release received from
Coro Mining Corp. ("Coro"). Benton currently holds 41.84% of the issued and
outstanding shares of Coro. Benton's net asset value including its
approximate $1.1 million in cash and the value of the Coro investment equates
to approximately $0.127 per issued and outstanding common share of Benton
versus its current trading price of $0.04 per share (all figures based on May
7, 2013 closing market prices). Coro's news release is reproduced below:
May 8th 2013, Coro Mining Corp. ("Coro" or the "Company") (TSX Symbol: COP) is
pleased to announce that it has signed a Letter of Intent ("LOI") with ProPipe
SA, ("ProPipe") an engineering firm based in Santiago, Chile which gives
ProPipe the right to earn up to a 50% interest in the Berta property, located
approximately 20km west of the village of Inca de Oro, in the III Region of
Chile. Coro also announces that it has renegotiated the terms of its
underlying option agreement to acquire Berta, by reducing the payment due on
10th June 2013 from US$1,500,000 to US$500,000 and the final payment due on
10th June 2014 from US$3,500,000 to US$2,500,000. A 1.5% NSR will now apply to
all production from the property.
Alan Stephens, President and CEO of Coro commented, "We are delighted that
ProPipe have agreed to become our partner on the Berta project, and are
confident that their extensive Chilean engineering experience will result in
the expeditious development of an operation capable of producing approximately
5,000 tpy copper cathode, on a highly cost effective basis. ProPipe carried
out the Company's recent NI43-101 resource estimate technical report and as a
result are fully familiar with the project. We hope that Berta will form the
basis of a new business partnership which will combine Coro's demonstrated
ability to identify new projects, and ProPipe's capacity to develop them
efficiently and will be the first step in building a sustainable cash flow
generating business for the Company."
Victor Araya, Director of ProPipe commented, "We are very pleased to have the
opportunity to participate in the development of Berta, and wish to advance it
to a production decision as soon as possible. ProPipe look forward to
establishing a relationship with Coro, and hope that it will lead to new
opportunities to build a high technology, performance mining business in Chile
in the future."
The principal terms of the LOI are;
Within 10 days of signing the LOI, Coro will form a new company, NewSCM and
transfer its rights to the Berta property.
ProPipe may earn up to 50% of the shares in NewSCM by completing a series of
payments, work commitments and project financing, thereby earning percentages
of that company as follows;
-- Making the US$500,000 option payment due on 10th June 2013: 10%
-- Completing and filing an Environmental Impact Declaration by
30th July 2013: 3% earned
-- Completing a NI43-101 compliant PEA by September 30th 2013: 5%
-- Obtaining and structuring project financing on non-recourse
basis, at market conditions, with funds available within 6
months of completion of the PEA, for a minimum of 70% of the
project cost, including a cost overrun facility, as determined
in the PEA. In the event that this financing is for 100% of the
project cost, ProPipe will earn 32% of New SCM, for a total
shareholding of 50%. If the financing is between 70% and 100%
of the required funding, ProPipe will earn a pro-rata
shareholding in NewSCM. At the minimum 70% level, they would
earn 22.4% of NewSCM, for a total shareholding of 40.4%. In the
event that less than 100% funding is received, ProPipe have the
right to earn the corresponding shareholding for the percentage
difference in funding, or to assign their right to do so to a
third party on the same terms. In the event that they do
neither, they must complete such additional work and reports as
required by Coro by March 31st 2014, for Coro to obtain the
financing required and thus earn the corresponding
-- In the event that ProPipe do not arrange a minimum of 70%
project financing, they must complete a NI43-101 compliant DFS
for the project by 31st March 2014, and by so doing, will earn
an additional 7% shareholding, for a total shareholding of 25%
in NewSCM. Coro and ProPipe will then seek project financing on
a pro-rata basis
-- In the event that the financing does not include the
US$2,500,000 option payment due on June 10th 2014, ProPipe and
Coro will fund this pro-rata.
-- ProPipe will be Operator during the development and
construction of the project, thereafter the Operatorship will
alternate every 2 years.
-- There will be a 30 day due diligence period to confirm title to
the property, followed by the expeditious drawing up and
signature of a definitive shareholders agreement.
About ProPipe SA
ProPipe is a Chilean supplier of consultancy, engineering and project
management services to its customers in the mining process, infrastructure and
environment markets. ProPipe have relevant experience in conceptual and basic
design, preliminary feasibility and feasibilities studies, and detailed
engineering for mining companies in Chile. Some of its principal clients are
BHP Billiton (Minera Escondida), Antofagasta Minerals (Minera Los Pelambres,
Minera El Tesoro, and Minera Esperanza), Minera Las Cenizas and Algorta Norte.
ProPipe's recent projects include the Camarones 7,000 tonne per year copper
cathode plant, the Algorta Norte 78 km sea water pipeline, and Minera
Escondida's Coloso filter plant expansion project.
Berta is a modest sized, near surface, copper oxide deposit, with
mineralization, as defined by drilling, mapping and geochemistry, occurring in
three principal areas; Berta Sur, Central and Norte. It is associated with
sub-vertical, elongate, potassically altered porphyry intrusive bodies and
related hydrothermal and intrusive breccias, emplaced into a tonalite stock.
At Berta Sur, this mineralization is present within a roughly horseshoe shape
area with oxidation extending from surface to depths of 50m to 100m. Berta
Central comprises several smaller bodies, located immediately north of Berta
Sur, which were the focus for previous small scale copper oxide production.
Berta Norte comprises several, discreet, NW oriented zones of mineralization,
individually 25-85m in width, 100-250m in strike length and partially gravel
Coro announced a NI43-101 compliant resource estimate for the Berta Sur area,
in its news release NR12-19, dated December 6th 2012 and the results of
preliminary metallurgical test work in its news release NR12-17, dated
November 5th 2012. We see potential for additional resources on the property
in the Berta Central deposits, and believe there may be potential in the
surrounding district to augment these.
All final agreements have been signed with Teck for the sale of the Chacay
property and we are in the final stages of registering the claims transfer
with the authorities. Payment of US$2,000,000, as described in our news
release NR13-03, dated April 2nd 2013, will be received upon delivery of proof
of transfer to Teck, which we expect to be completed very shortly.
Payen, El Desesperado and Llancahue
In light of the current difficult market conditions, Coro has elected to seek
partners for its three active Chilean exploration projects. Confidentiality
agreements have been signed with a number of companies, and data and field
reviews completed by several of them.
The approval process for the update to the Company's approved Environmental
Impact Study ("EIS") submitted to the government of Mendoza, Argentina in July
2012, in relation to the San Jorge Bi-provincial Leach Project ("SJBP")
continues to progress within the applicable time frames established by the
provincial regulations. The SJBP Leach Project comprises a rock quarrying
operation in Mendoza province together with a processing plant located in San
Juan province, for the production of up to 25,000 tonnes per year of copper in
cathode. The approval sought is confined to the proposed railway line to
transport ore from the San Jorge quarry to a planned solvent
extraction/electro-winning plant located in San Juan. Once granted, no further
environmental approvals would be required from the Mendoza government, as the
quarry itself and associated crushing facilities have already been approved in
the existing EIS.
The SJBP Leach Project could be operated in full compliance with all existing
laws and regulations in both provinces and applicable royalties would be paid
to the province of Mendoza. Additionally, as no mineral processing would take
place in Mendoza, no substances banned by the 7722 law would be employed
there. We continue to look forward to the approval of this simple update by
the Mendoza authorities later this year, so that a further EIS for the
proposed plant facilities in San Juan province can be prepared and submitted.
Alan Stephens, FIMMM, President and CEO of Coro, a geologist with more than 37
years of experience, is the Qualified Person for Coro who has reviewed and
approved the contents of this news release.
CORO MINING CORP.
"Alan Stephens" Alan Stephens
President and CEO
About Coro Mining Corp.:
The Company was founded with the goal of building a mining company focused on
medium-sized base and precious metals deposits in Latin America. The Company
intends to achieve this through the exploration for, and acquisition of,
projects that can be developed and placed into production. Coro's properties
include the Berta copper development project and the Payen, El Desesperado,
Llancahue exploration properties all located in Chile; and the advanced San
Jorge copper-gold project, in Argentina.
For further information please visit the Company's website at
www.coromining.com or contact Michael Philpot, Executive Vice-President at
(604) 682 5546 or email@example.com
This news release includes certain "forward-looking statements" under
applicable Canadian securities legislation. Such forward-looking statements or
information, including but not limited to those with respect to the prices of
copper, estimated future production, estimated costs of future production,
permitting time lines, involve known and unknown risks, uncertainties, and
other factors which may cause the actual results, performance or achievements
of the Company to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements or
information. Such factors include, among others, the actual prices of copper,
the factual results of current exploration, development and mining activities,
changes in project parameters as plans continue to be evaluated, as well as
those factors disclosed in the Company's documents filed from time to time
with the securities regulators in the Provinces of British Columbia, Alberta,
Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward
Island and Newfoundland and Labrador.
On behalf of the Board of Directors of Benton Capital Corp.,
Stephen Stares, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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."
Forward-looking statements are subject to a variety of risks and uncertainties
which could cause actual events or results to differ from those reflected in
the forward-looking statements, including, without limitation: risks related
to failure to obtain adequate financing on a timely basis and on acceptable
terms; risks related to the outcome of legal proceedings; political and
regulatory risks associated with mining and exploration; risks related to the
maintenance of stock exchange listings; risks related to environmental
regulation and liability; the potential for delays in exploration or
development activities or the completion of feasibility studies; the
uncertainty of profitability; risks and uncertainties relating to the
interpretation of drill results, the geology, grade and continuity of mineral
deposits; risks related to the inherent uncertainty of production and cost
estimates and the potential for unexpected costs and expenses; results of
prefeasibility and feasibility studies, and the possibility that future
exploration, development or mining results will not be consistent with the
Company's expectations; risks related to gold price and other commodity price
fluctuations; and other risks and uncertainties related to the Company's
prospects, properties and business detailed elsewhere in the Company's
disclosure record. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those described in forward-looking statements.
Investors are cautioned against attributing undue certainty to forward-looking
statements. These forward looking statements are made as of the date hereof
and the Company does not assume any obligation to update or revise them to
reflect new events or circumstances. Actual events or results could differ
materially from the Company's expectations or projections.
Stephen Stares @: 3250 Highway 130, Rosslyn, ON P7K 0B1 Phone (807) 475-7474
Fax (807) 475-7200 www.bentoncapital.ca
SOURCE: Benton Capital Corp.
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