Benton Resources (TSXV: BEX) and Maxtech Ventures (CSE: MVT) signed a binding letter of intent in which MVT will have the option to earn a 100% interest in Benton’s 100%-owned Panama gold project located in Ontario’s Red Lake mining district.
In order to go ahead with the deal, Maxtech has to issue 2,000,000 Maxtech common shares to Benton and pay $600,000 in cash or share equivalent and in scheduled installments through a four-year period.
According to Benton, the Panama project is host to some of the highest unsourced gold grains (107 grains) in glacial till discovered by the Geological Survey of Canada
Benton will retain a 2% NSR on the project with MVT having the option to buy back 1% for $1 million in cash.
According to the companies, the letter of intent contains a 2-kilometre area of influence that covers the project’s claim cell boundary.
Panama is located 50 kilometres away from and on trend with Great Bear Resources’ Dixie project.
Benton acquired the property by staking and has completed various phases of exploration including a recently completed drill program and high-detail airborne mag survey which -according to the company- has helped identified several high-priority targets for immediate follow-up.
“The opportunity for Maxtech to explore such an advanced project at this stage of the gold price cycle is very timely,” Peter Wilson, Maxtech’s CEO