Benton Resources Inc. said March 26 that it signed a binding term sheet to sell its 80% interest in the Cape Ray gold joint venture to ASX-listed Matador Mining Ltd. for A$5.3 million in cash and shares.

The deal covers the four main deposits of the Cape Ray joint venture, as well as its 100% interest in the Cape Ray mining belt concessions, including the Isle aux Morts and Big Pond deposits.

Subject to shareholder and regulatory approval, the company will receive A$3.3 million in cash and 8 million shares for the stake, as well as 833,333 share purchase options at 30 cents each, exercisable within two years. It will also retain a 1% net smelter returns royalty, with Matador holding an option to buy back 0.5% NSR for A$1 million.

In June 2017, Benton's joint venture partner, Nordmin Engineering Ltd., elected not to complete an option agreement to earn up to a 50% interest in the Cape Ray project.