Two Thunder Bay firms are teaming up to advance a gold project on the East Coast.
Benton Resources announced Jan. 20 that it’s executing an agreement with Nordmin Engineering to develop the Cape Ray gold project in southwestern Newfoundland.
The deal involves forming a joint venture – SubCo B – that would grant Nordmin up to a 50 per cent stake in the project by delivering on a series of expenditures and performing some technical work in reaching some milestones involving four deposits.
Benton signed a letter of intent with Nordmin last fall. Nordmin works exclusively in the mining, power generation, and pulp and paper sectors.
"Executing the final agreement with Nordmin is an extraordinary milestone for Benton shareholders, the advancement of the Cape Ray project and the future of the company,” said Benton president-CEO Stephen Stares in a Jan. 20 release. “With technical work well underway, Benton is hopeful that the Cape Ray deposits become the site of production in the future.
Benton will lead the exploration effort which will be funded by Nordmin up to the completion of the feasibility study.
"Moving this effort forward is something that we at Nordmin are very excited about,” said Nordmin president Chris Dougherty. “The Cape Ray project has tremendous potential, and we are working hard with our partners to develop a strategy to move this effort forward in an efficient and expeditious way. Our goal is production, and we are now focusing on that goal."
