Benton teams up with Teck Cominco for Voiseys nickel search

Vancouver – Benton Resources (BTC-V) is teaming up with Teck Cominco (TCK.B-T, TCK-N) to explore for nickel on a package of Labrador claims units located about 60 kilometres north of the Voiseys Bay mine.

The King Lake project is comprised of 754 units that recently became available for on-line staking under agreements between local Inuit and the provincial government.

Benton President Stephen Stares said it made sense for both companies to combine their respective claim blocks, which contain surface showings of high grade copper and nickel.

They got some blocks and we got some blocks so we had no choice but to do a joint venture, said Stares, during an interview from Thunder Bay, Ont.

Under an agreement, that requires Benton to spend the first $600,000 on exploration, each company will start out as equal partners. Teck Cominco has also agreed to invest $700,000 in shares of Benton at 70 a share.

However, the major can take its project interest up to 70% by spending another $11 million on exploration by the end of 2013, leaving Benton with 30%.

Teck will act as initial operator of all programs on the property. However, if each party dilutes to a 10% stake, that interest will automatically be converted to a 2% net smelter royalty.

If we get another Voiseys Bay, and we end up with 30%, we are in pretty good shape, said Mr. Stares.

Benton shares reacted to the news by rising 1 to 63 on the TSX Venture Exchange, Feb. 28, the day the terms of the joint venture were announced. Benton is involved in other exploration projects, mainly located in northwestern Ontario.