FAQ: Noble Mineral Exploration's Sale of Island Pond Claims to Benton Resources
Summary
Noble Mineral Exploration Inc. has agreed to sell its Island Pond mining claims in Newfoundland & Labrador to Benton Resources Inc. in exchange for 1,000,000 Benton shares, $30,000 cash, and a retained 1% net smelter returns royalty.
What is the main purpose of this announcement?
Noble Mineral Exploration Inc. is announcing it has entered into an agreement to sell its Island Pond mining claims in Newfoundland & Labrador to Benton Resources Inc.
What exactly is being sold in this transaction?
Noble is selling a group of 7 mining claims located in Central Newfoundland, covering approximately 175 hectares, known as the Island Pond property.
What is Noble receiving in exchange for the Island Pond claims?
Noble will receive 1,000,000 common shares of Benton Resources Inc., a $30,000 cash payment, and will retain a 1% net smelter returns royalty on the property.
Where is the Island Pond property located and why is it strategically important?
The property is located in Central Newfoundland, north of Benton’s South Pond Gold Zone within the Great Burnt Copper-Gold Project area, making it strategically positioned within Benton’s existing project footprint.
What are the key terms of the royalty arrangement?
Noble retains a 1% net smelter returns royalty that is not subject to buyback rights, though Benton has right of first refusal if Noble proposes to sell the royalty. The property also has a pre-existing 2% net smelter returns royalty.
What conditions must be met before this transaction can close?
Closing is subject to approval by Noble’s Board of Directors and any required approval from the TSX Venture Exchange.
Who are the key companies involved in this transaction?
Noble Mineral Exploration Inc. (TSXV: NOB, OTCQB: NLPXF) is the seller, and Benton Resources Inc. is the buyer of the Island Pond claims.
What is the significance of the share hold period mentioned?
The 1,000,000 Benton shares Noble will receive are subject to a standard four-month hold period as required under TSX Venture Exchange policies.
What other mineral assets does Noble Mineral Exploration hold?
Noble holds extensive mineral rights including ~70,000 hectares in Northern Ontario, ~14,000 hectares in Quebec and Newfoundland, with diversified gold, nickel-cobalt, base metal, graphite, and uranium exploration targets across multiple projects.
Where can investors find more detailed information about Noble Mineral Exploration?
More detailed information is available on Noble’s website at www.noblemineralexploration.com, and their common shares trade on the TSX Venture Exchange under symbol ‘NOB’.
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