VANCOUVER, Apr. 7, 2010 (Canada NewsWire Group) -- /CNW/ -- GMV Minerals Inc. (the "Company" or "GMV") (TSX-V:GMV) is pleased to announce that it has entered into an initial property acquisition agreement with Shoreham Resources Ltd. ("Shoreham") (TSX-V: SMH) whereby the Company has the option to acquire the right from Shoreham's wholly owned subsidiary, RPM Exploration Inc., to earn up to 100% of the mineral rights to 41 medium scale prospecting permits and 1 large scale prospecting permit in the Upper Puruni area and the Otomung East area, in The Republic of Guyana, South America.
The summary of terms of the acquisition are as follows:
Cash payments: US$40,000 upon the approval of TSX Venture Exchange (the
US$25,000 on or before the first anniversary of Exchange
Share issuance: 3 million common shares of GMV Minerals Inc issued in
tranches of 1.6 million common shares (post 2:1
consolidation) on Exchange approval and 1.4 million
common shares (post 2:1 consolidation) on the first
anniversary following Exchange approval.
Expenditures: Cumulative additional expenditures of US$3million during
a period of 4 years from Exchange approval of this
transaction (year 1-US$400,000; year 2-US$600,000;
year 3-US$800,000; year 4-US$1.2million)
NSR: A 2% NSR royalty, of which 1% may be purchased back by
GMV at any time prior to production for a payment of
In addition, GMV has agreed to make available to Shoreham certain additional funds which Shoreham may utilize to bid at private auctions for additional contiguous permits in Guyana and, if such bids are successful, will form part of the property acquisition agreement.
While the initial agreement is intended to be binding, the parties have agreed to enter into a comprehensive definitive agreement setting out in detail the terms and conditions of the acquisition. The completion of the acquisition is subject to all applicable approvals including the approval of the TSX-Venture Exchange.
The Company believes that The Republic of Guyana is a favourable jurisdiction for mineral exploration and development. It is an English-speaking former British colony with stable politics and a population of approximately 800,000.
In addition, the Company wishes to announce that it has terminated its previously announced option assignment for up to 75% of the RHG copper-gold exploration project property located 110 kilometres southwest of Dease Lake, BC.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements based on assumptions and judgments of management of the Company regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The Company disclaims any intention or obligation to revise or update such statements except as may be required by law.