Benz Mining Completes 100% Acquisition of Eastmain and Ruby Hill Properties

Full Ownership Achieved

Benz Mining Corp. has taken a decisive step in its growth strategy by acquiring the remaining 25% interest in the Eastmain Gold Project and Ruby Hill Properties from Fury Gold Mines Limited. This move grants Benz 100% ownership of these key assets located in Québec’s prolific James Bay District, a region known for its high-grade gold deposits.

The acquisition was executed through milestone payments totaling C$1.1 million, comprising both cash and the issuance of common shares. Specifically, Benz paid C$750,000 in cash and issued 171,142 shares valued at approximately C$1.46 each. This blend of payment methods reflects a balanced approach to capital management while aligning shareholder interests with the company’s growth prospects.

Royalty Structure and Financial Implications

As part of the transaction, Benz granted Eastmain Mines Inc. a 2% net smelter return (NSR) royalty on certain areas of the Eastmain Gold Project, with an option to buy back half of this royalty for C$1.5 million. Similarly, a 1% NSR royalty was granted on the Ruby Hill Properties, with a buyback option for half at C$500,000. These royalties are structured to ensure that the total royalty burden does not exceed 2.5%, providing Benz with a manageable cost framework for future production.

The royalty arrangements are designed to balance immediate acquisition costs with long-term financial flexibility. The buyback options offer Benz the potential to reduce ongoing royalty payments, which could enhance project economics as development progresses.

Strategic Significance for Benz Mining

Securing full ownership of the Eastmain Gold Project and Ruby Hill Properties consolidates Benz’s foothold in one of Canada’s premier gold exploration regions. The Eastmain Project alone boasts a mineral resource estimate exceeding one million ounces of gold at a high grade of 6.1 grams per tonne, underscoring the asset’s quality and potential profitability.

This acquisition complements Benz’s existing portfolio, which includes the Glenburgh and Mt Egerton Gold Projects in Western Australia. The company’s dual-listed status on the TSX Venture Exchange and the Australian Securities Exchange positions it well to attract diverse investor interest and capital for advancing its projects.

Next Steps and Market Outlook

The issuance of shares as part of the payment remains subject to final approval by the TSX Venture Exchange, a routine regulatory step that Benz expects to clear without issue. Moving forward, the company will likely focus on advancing exploration and development activities at Eastmain and Ruby Hill, leveraging its geological expertise and advanced techniques to unlock further value.

Investors will be watching closely to see how Benz manages the royalty buyback options and capitalises on the full control of these assets to drive growth and shareholder returns.