Benton Resources Inc. (TSXV: BEX) and Metals Creek Resources Corp. (TSXV: MEK) have signed an option agreement granting Brutus Mining Inc. the right to acquire a 100% interest in the Bay of Islands Project, a natural hydrogen exploration property in Western Newfoundland. The agreement, dated November 5, 2026, covers three licences totalling 334 claim units across 83.5 square kilometres. The deal adds to growing investor interest in Atlantic Canada as an emerging natural hydrogen exploration jurisdiction.

Key Points

  • Benton Resources Inc. (TSXV: BEX) and Metals Creek Resources Corp. (TSXV: MEK) are the joint optionors in this transaction
  • Brutus Mining Inc. has been granted an option to acquire 100% of the Bay of Islands hydrogen property in Western Newfoundland
  • Brutus will pay an aggregate $100,000 in cash and issue 1,200,000 common shares at a deemed price of $0.76 per share to exercise the option
  • Investors may watch for CSE acceptance of the agreement and planned soil-gas and seismic work in the 2027 field season

Bay of Islands Option Terms and Royalty Structure

Under the agreement, Brutus will pay the optionors $20,000 within 10 business days of the November 5, 2026 effective date, followed by $30,000 and $50,000 on or before the first and second anniversaries. Share issuances total 1,200,000 Brutus common shares at a deemed price of $0.76 each, delivered in three tranches of 200,000, 400,000, and 600,000 shares. Upon full exercise, the optionors will receive a 3% Gross Metals Returns royalty on the project, with 1.5% of that royalty redeemable for a $1,000,000 payment. The agreement remains subject to acceptance by the Canadian Securities Exchange.

Natural Hydrogen Prospectivity of the Bay of Islands Complex

The Bay of Islands Project is considered geologically favourable for natural hydrogen due to its ophiolite setting, which the release states has been linked to alkaline, hydrogen-bearing groundwater sources in published scientific literature. A 2024 Quebec study cited in the announcement references the Bay of Islands complex as analogous to ophiolite areas of interest for natural hydrogen. The release also notes the presence of chrome and serpentine minerals alongside regional fault structures, which the company describes as mechanisms and pathways for hydrogen generation and migration within the project area.

Planned Exploration Programme and Share Resale Restrictions

Benton and Metals Creek indicate the project will initially be evaluated through compilation of public geoscience data and structural interpretation, with a proposed soil-gas survey and seismic mapping planned for the 2027 field season. Regarding the Brutus shares to be issued, the first and second tranches will carry contractual resale restrictions expiring 36 months from issuance, with limited exceptions of 100,000 shares per tranche. Third-tranche shares will be subject to a 12-month contractual resale restriction, in addition to any hold periods required under applicable securities laws.