05:16:35 EDT Thu 28 Mar 2024
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Sokoman Minerals Corp
Symbol SIC
Shares Issued 199,945,837
Close 2021-10-15 C$ 0.365
Market Cap C$ 72,980,231
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Benton, Sokoman sign mutual participation agreements

2021-10-15 16:37 ET - News Release

See News Release (C-BEX) Benton Resources Inc

Mr. Stephen Stares of Benton Resources reports

BENTON AND SOKOMAN ENTER INTO MUTUAL PARTICIPATION AGREEMENTS GOVERNING COST REIMBURSEMENT UNDER THEIR STRATEGIC EXPLORATION ALLIANCE

Benton Resources Inc. and Sokoman Minerals Corp. have entered into mutual participation agreements that govern cost reimbursement between the companies relating to certain option agreements entered into by each of Benton and Sokoman on behalf of their strategic exploration alliance announced on May 20, 2021. Pursuant to the strategic alliance, the companies agreed to share, on a 50/50 basis, exploration costs and costs associated with the exercise of property options entered into by either party on behalf of the strategic alliance. In cases where one of the joint venture parties enters into an option agreement that requires shares to be issued to a third party optionor, the other joint venture party will contribute its 50 per cent of the costs by reimbursing the first company for 50 per cent of the option payments. Where common shares are required to be issued as part of the option payments in order to ensure that the costs are equally divided, the monetary value of such shares will be calculated, and the joint venture party that did not enter into the option agreement will issue such number of shares to the joint venture party that did enter into the option agreement that have a monetary value equal to 50 per cent of the value of the shares issued by the joint venture party that has entered into the option agreement.

Sokoman and Benton have, on behalf of the strategic alliance, each entered into two property option agreements that have previously been announced and are being contributed to the strategic alliance and governed by the participation agreements. The participation agreements simply formalize and clarify what cash payments and share issuances are required to be made by the joint venture party that did not directly enter into a particular option agreement in order to reimburse the joint venture party that did enter into the option agreement.

Benton participation agreement:

  1. Sokoman entered into an option agreement that provides it with the right to acquire a 100-per-cent interest in a mineral licence consisting of seven mineral claims lying within the Grey River gold property. In order to exercise the Lewis option, Sokoman is required to make four cash payments of $10,000 each by June 15, 2024, and issue four tranches of shares of 50,000 each by June 15, 2024 (see Sokoman news release dated July 13, 2021). In accordance with the terms of the Benton participation agreement, in order to contribute its 50 per cent of the costs of the Lewis option, Benton will, to the extent that Sokoman continues to exercise the Lewis option, reimburse Sokoman by: (i) paying to Sokoman 50 per cent of the cash payments made by Sokoman to exercise the Lewis option ($20,000); and (ii) issuing to Sokoman such number of shares of Benton having a value equal to 50 per cent of the value of each tranche of shares Sokoman issues to exercise the Lewis option.
  2. Sokoman entered into an option agreement that provides it with the right to acquire a 100-per-cent interest (subject to a 1.5-per-cent net smelter return royalty, two-thirds of which may be purchased for $1-million) in three licences consisting of four mineral claims lying within the Grey River gold property. In order to exercise the G2B option, Sokoman is required to make three annual cash payments of $10,000 each and issue three tranches of shares of 50,000 each (see Sokoman news release dated July 13, 2021). In accordance with the terms of the Benton participation agreement, in order to contribute its 50 per cent of the costs of the G2B option, Benton will, to the extent that Sokoman continues to exercise the G2B option, reimburse Sokoman by: (i) paying to Sokoman 50 per cent of the cash payments made by Sokoman to exercise the G2B option ($15,000); and (ii) issuing to Sokoman such number of shares of Benton having a value equal to 50 per cent of the value of each tranche of shares Sokoman issues to exercise the G2B option.

Sokoman participation agreement:

  1. Benton entered into an option agreement that provides it with the right to acquire a 100-per-cent interest (subject to a 2-per-cent net smelter return royalty, one-half of which may be purchased for $1-million) in 11 mineral claims at the Kepenkeck gold project. In order to exercise the Keats option, Benton is required to make the following cash payments and issue the following shares: (i) an initial $10,000 and 200,000 shares; (ii) $20,000 and 200,000 shares on the first anniversary; (iii) $20,000 and 200,000 shares on the second anniversary; and (iv) $40,000 and 400,000 shares on the third anniversary (see Benton news release dated May 6, 2021). In accordance with the terms of the Sokoman participation agreement, in order to contribute its 50 per cent of the costs of the Keats option, Sokoman will, to the extent that Benton continues to exercise the Keats option, reimburse Benton by: (i) paying to Benton 50 per cent of the cash payments made by Benton to exercise the Keats option ($45,000); and (ii) issuing to Benton such number of shares of Sokoman having a value equal to 50 per cent of the value of each tranche of shares Benton issues to exercise the Keats option.
  2. Benton entered into an option agreement that provides it with the right to acquire a 100-per-cent interest (subject to a 2-per-cent net smelter return royalty, one-half of which may be purchased for $1-million) in two licences consisting of 30 mineral claims at Larry's Pond. In order to exercise the Rogers option, Benton is required to make the following cash payments and issue the following shares: (i) an initial $10,000 and 50,000 shares; (ii) $10,000 and 50,000 shares on the first anniversary; (iii) $10,000 and 50,000 shares on the second anniversary; and (iv) $30,000 and 50,000 shares on the third anniversary (see Benton news release dated June 29, 2021). In accordance with the terms of the Sokoman participation agreement, in order to contribute its 50 per cent of the costs of the Rogers option, Sokoman will, to the extent that Benton continues to exercise the Rogers option, reimburse Benton by: (i) paying to Benton 50 per cent of the cash payments made by Benton to exercise the Rogers option ($30,000); and (ii) issuing to Benton such number of shares of Sokoman having a value equal to 50 per cent of the value of each tranche of shares Benton issues to exercise the Rogers option.

The value of Sokoman shares issued or to be issued to exercise the Lewis option, the G2B option or shares to be issued under the Sokoman participation agreement shall be the share price that is the greater of 45 cents or the 20-day volume-weighted average price of Sokoman shares prior to the day the Sokoman shares are issued. The value of Benton shares to be issued to exercise the Keats option, the Rogers option or shares to be issued under the Benton participation agreement shall be the share price that is the greater of 15.4 cents or the 20-day volume-weighted average price of Benton shares prior to the day that Benton shares are issued.

About Benton Resources Inc.

Benton Resources is a well-financed, Canadian-based project generator with a diversified property portfolio in gold, silver, nickel, copper and platinum group elements. Benton holds multiple high-grade projects that are available for option, which can be viewed on the company's website. Parties that are interested in seeking more information about properties available for option can contact Stephen Stares directly.

About Sokoman Minerals Corp.

Sokoman Minerals is a discovery-oriented company with projects in the province of Newfoundland and Labrador, Canada. The company's primary focus is its portfolio of gold projects, including Moosehead, Crippleback Lake (optioned to Trans Canada Gold Corp.) and East Alder (optioned to Canterra Minerals Corp.), located along the central Newfoundland gold belt, and the recently acquired, district-scale Fleur de Lys project in northwestern Newfoundland, which is targeting Dalradian-type orogenic gold mineralization similar to the Curraghinalt and Cavanacaw deposits in Northern Ireland and the Cononish deposit in Scotland. The company also recently entered into a strategic alliance with Benton Resources through three large-scale joint venture properties, including Grey River, Golden Hope and Kepenkeck in Newfoundland. Sokoman now controls, both independently and through the Benton alliance, over 150,000 hectares (greater than 6,000 claims) of land, making the company one of the largest landholders in Newfoundland, Canada's newest and rapidly emerging gold districts. The company also retains an interest in an early-stage antimony/gold project (Startrek) in Newfoundland, optioned to White Metal Resources Inc. In Labrador, the company has a 100-per-cent interest in the Iron Horse iron project, which has direct shipping ore (DSO) potential.

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