Shoreham Acquires GOLD and PGM Portfolio of Guiana Shield Resources Inc.admin
Shoreham Resources Ltd., a Canadian exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in Guyana and Canada, announce the signing of a formal letter agreement with Guiana Shield Resources Inc., a Guyanese Company. The agreement grants Shoreham the right to earn 100% of 13 Prospecting Licenses in Guyana which were selected by Guiana Shield Resources based on the results of a major regional exploration program which commenced in 1996. A geological map identifying the license locations can be found on Shoreham’s website by clicking on this link http://www.shoreham.ca/property_gsr.php.
The portfolio consists of four groups of Prospecting Licenses called Project Areas in the agreement. The option agreement grants Shoreham the right, subject to a net smelter return royalty provision, to earn 100% of the mineral rights by issuing five million shares of Shoreham Resources Ltd. in four payments, making scheduled cash payments related to the status of each of the Project Areas, and milestone payments (cash proportional to 43-101 compliant gold resources and one million shares). The Milestone payments are due when the first of the Prospecting Licenses in a given Project Area is advanced to the status of a Mining License with completion of a feasibility study and award of an environmental impact permit in preparation for development of a mining operation. The first share payment of two million shares is due on Exchange approval of the Agreement. The Agreement incorporates royalty buy-out provisions. The lands controlled in this agreement cover significant exploration targets with indications of potential for gold and platinum group metals. The technical merits of each Project Area will be addressed in detail in News Releases as the data are processed and work programs are prepared.
The Whana Creek Project Area is contiguous with Shoreham’s Black Banana Property (see News Release 2009-10). This 60,000 acre Project Area was selected and screened by previous operators with sequenced programs of airborne geophysics, prospecting, regional and detailed grid soil geochemistry. Some of the regional grid surveys extended into the land which is now the Shoreham Black Banana project and identified gold targets which are considered to be extensions of the mineralized structures recently discovered by Shoreham (News Release 2009-10 dated March 30, 2009 and SMH News Release 2008-17 dated October 8, 2008). The company has sufficient experience in this region, particularly based on the recently completed Black Banana Program, to be satisfied with the technical justification of this component of the transaction.
The Aunama and Arawini Project Areas, consisting of a total of seven (7) prospecting licenses with a cumulative area of 84,000 acres, cover geophysical and geochemical targets indicating the presence of gold prospects along a regional trend which includes the Aurora and Upper Puruni Gold Prospects in Guyana and the KM 88 Gold District in Venezuela. The company has mobilized a field team for field checking of these targets as part of its due diligence review. The Masawaki Project area consists of one Prospecting License with an area of 12,000 acres. The property covers reported palladium and platinum prospects which will be subjected to continuing work by the Company after a review of funding options and priorities.