Regency to acquire Escape Lake property from Benton

The Escape Lake and Thunder Bay North projects are located 50 km from the town of Thunder Bay, pictured here. (Image by P199, Wikimedia Commons).

Benton Resources (TSXV: BEX) and Regency Gold (NEX:RAU.H) announced that they have signed a definitive agreement whereby Regency has acquired an option to acquire a 100% right, title and interest in the Escape Lake property in Ontario, Canada.

In a press release, the miners said that the deal is subject to a 1.0% net smelter return royalty to be retained by Rio Tinto Exploration Canada from Benton with the option to be conditional on Benton exercising its pre-existing option to acquire the Escape Lake property from RTEC under a pre-existing agreement with RTEC. 

Escape Lake and Thunder Bay North lie 60 kilometres south of North American Palladium’s Lac des Illes Mine and 10 kilometres east of NAP/Transition Metals’ Sunday Lake Intrusion

Benton also assigned to Regency its rights under a letter of intent previously entered into with Panoramic Resources pursuant to which Benton acquired the right to acquire 100% of PAN’s subsidiary Panoramic PGM (Canada) which owns the Thunder Bay North project.

The 220-hectare Escape Lake property is located within the Thunder Bay North project claim block and along the interpreted conduit system which contains/controls the Pt-Pd-Base Metal mineralization on TBN.

According to the miners, upon closing, Regency will have the right to exercise the option by issuing to Benton an aggregate of 24,615,384 common shares; by fulfilling the remaining terms of the RTEC agreement that Benton has with RTEC on Escape Lake; by entering into and fulfilling the terms of a formal binding purchase and sale agreement with PAN for the acquisition of the PAN Subsidiary including the payment to PAN of a deposit of $250,000 as a down payment to PAN; and by issuing to Benton a 0.5% net smelter return royalty from production on Escape Lake and a 0.5% net smelter return royalty from production on any mineral claims comprising the TBN project that a net smelter royalty has not previously been granted.

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