Apr. 9, 2010 (TheNewswire.ca) --
LANGLEY, CANADA, April 9, 2010 - Shoreham Resources Ltd. (the "Company" or "Shoreham")(TSX-V: "SMH"), a Canadian exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in Guyana and Canada, is providing updates on assorted pending matters.
The Company, through its 100% owned Guyana subsidiary RPM Exploration Inc. and a contractual arrangement with a Guyana National, has participated in auction and permit filing proceedings in Guyana to secure priority rights to a selection of Large Scale Prospecting Licenses and Medium Scale Prospecting Permits. The Company is currently engaged in screening of these properties to establish priorities and evaluate the opportunities they represent. Some of the Medium Scale Prospecting Permit filings are subject to an ongoing bidding process, (the "Ongoing Auction Permits") which is open only to the parties who submitted applications in the initial round of bidding in November and December of 2009. Some of the permits have already been secured through the auction procedures to date. A closed auction, open only to the prior applicants for specific permit areas (the "Closed Auction"), was scheduled for April 7, 2010 but has been delayed.
As part of the management of the new lands involved with this procedure, the company has entered into an initial property acquisition letter agreement (the "Letter Agreement") with GMV Minerals Inc. (TSXV:GMV) ("GMV")(TSX-V:GMV) whereby Shoreham, has granted to GMV the option (the "Option") to acquire a 100% interest in the mineral rights to 41 medium scale prospecting permits and one large scale prospecting permit in the Upper Puruni and the Otomung East areas of Guyana (the "Properties"). GMV has advanced US$100,000 to Shoreham in order to work toward securing the Ongoing Auction Permits. The area of interest of this agreement includes 71 Permit areas which are subject to the Closed Auction. Shoreham and GMV are screening the lands in question with the intent to select and secure (on a best efforts basis) the most prospective land through competitive bidding. Those lands which are thereby secured will be deemed to be part of the Properties and will be subject to the Option.
Pursuant to the terms of the Letter Agreement, in order to exercise the Option and acquire a 100% interest in the Properties, GMV will have to complete the following cash payments, share issuances and exploration expenditures:
Cash payments: US$40,000 to be paid to Shoreham upon the approval of the TSX Venture Exchange (the "Exchange") of the Option ("Exchange Approval").
US$25,000 to be paid to Shoreham on or before the first anniversary of Exchange Approval.
Share issuance: 3,000,000 common shares of GMV to be issued to Shoreham in tranches of 1,600,0000 common shares on Exchange Approval (post 2:1 consolidation which is expected to be completed during April, 2010 and 1,400,000 common shares (post 2:1 consolidation) on the first anniversary following Exchange Approval.
Expenditures: Cumulative exploration expenditures of US$3,000,000 during a period of four years from Exchange Approval (year 1-US$400,000; year 2-US$600,000; year 3-US$800,000; year 4-US$1,200,000). Shoreham will mange the project for the first year and be entitled to receive a 10% management fee.
NSR: GMV will grant Shoreham a 2% net smelter returns royalty on the Properties, of which 1% may be purchased back by GMV at any time prior to production for a payment of US$1,000,000.
While the Letter 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 Option. The exercise of the Option is subject to all applicable approvals including the approval of the TSX Venture Exchange.
David Bending, M.Sc., P. Geo., President and CEO of Shoreham Resources Ltd., reports that "The auction process is part of Shoreham's systematic consolidation of key target areas in Guyana. Some of the lands solicited provide protection to our key project areas but the lands in the Option with GMV are a new initiative. These warrant the independent focus which GMV will provide. We will focus on our core projects and are pleased with the arrangement with GMV"
The Company also announces that Mr. Greg MacRae has resigned from the Board of Directors of the Company to pursue other business interests. Mr. MacRae has served as a director since 2007.
David Bending, M.Sc., P. Geo., President and CEO of Shoreham Resources Ltd., reports that: "Greg MacRae has been an outstanding director and adviser to our company. We will miss his energy, his expertise and his perspective. We thank him and wish him well in all of his endeavours."
For further information please visit our website at www.shoreham.ca or contact our President and CEO, Mr. David A. Bending at 604-533-9288.
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.
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