Sardine Hill announcementSHOREHAM ACQUIRING AND FUNDING SARDINE HILL GOLD PROSPECT
Last Update: 12/30/2009 12:40:08 PM
Dec 30, 2009 (TheNewswire.ca via COMTEX) -- (via Thenewswire.ca)
LANGLEY, CANADA, December 30, 2009 - 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 pleased to announce that the Company is proceeding with a letter of intent (the "Sardine Hill LOI") pursuant to which it has the right to acquire 100% interest in Mariwa Mining Company Inc. ("Mariwa Mining"), a Guyanese company which has applied for a prospecting licence (the "Sardine Hill Licence") over the 10,880 acre Sardine Hill - Mariwa property (the "Sardine Hill Property") in Guyana. The Sardine Hill Licence was approved for processing by the Guyanese authorities on December 28, 2009. The obligations of the parties under the Sardine Hill LOI remain subject to confirmation by the vendors of Mariwa Mining (the "Vendors") that the Vendors will clear the Property of any small scale conflicting mineral claims at the vendors' expense. It is anticipated that this condition will be removed in the near future upon the execution of a definitive agreement (the "Definitive Sardine Hill Agreement") which will replace and supersede the Sardine Hill LOI. Pursuant to the terms of the Sardine Hill LOI, in order to acquire a 100% interest in Mariwa Mining, the Company is required to pay to the Vendors an aggregate of US$1,000,000 and issue to the Vendors a total of 1,500,000 common shares of the Company. The Company will also pay a total of US $250,000 for exploration data and files from work programs dating back to 1993, and undertake a consulting agreement with the former project manager of the Property. The Property is subject to a 3% net smelter return ("NSR") royalty payable to the Vendors. 100% of the royalty is subject to purchase by the Company.
The Property has been subject to systematic evaluation, including but not limited to airborne and ground geophysics, soil and auger sampling, trenching and diamond drilling by previous junior and major companies. The Company plans a compilation of all previous work and rapid advancement to systematic drilling during 2010. The Sardine Hill Property is a high priority opportunity for the Company as a result of the heritage of previous work, proximity to established infrastructure, and a style of mineralization amenable to large scale development.
Shoreham has also entered into a letter of intent (the "Mulgravian LOI") with Mulgravian Ventures Corp., a privately held company, pursuant to which the Company has granted Mulgravian the option (the "Mulgravian Option") acquire a 51% working interest in the Company's interest in the Sardine Hill Property by making aggregate exploration expenditures on the Sardine Hill Property of $3,000,000 over three years and subscribing for, on a private placement basis (the "Mulgravian Private Placement"), 1,250,000 units of the Company (each a "Unit") at a price of
.40 per Unit, with each Unit consisting of one common share of the Company (a "Share"), one half of one warrant exercisable to acquire one additional Share at a price of
.80 per Share and one quarter of one warrant exercisable to acquire one additional Share of the Company at a price of $1.60 per Share. In order to maintain the Mulgravian Option, Mulgravian must exercise all of the foregoing warrants within certain specified periods. The completion of the Mulgravian Private Placement shall be governed by a subscription agreement, which will be subject to TSX-V approval. Following the exercise of the Mulgravian Option, Mulgravian and the Company shall respectively hold a 51% and a 49% interest in the Sardine Hill Property, which shall be operated as a joint venture. The Mulgravian LOI will be replaced by a formal definitive option agreement in the near future, at which time the Company will provide more detailed information regarding this transaction.
The Sardine Hill LOI, the Mulgravian LOI and the Mulgravian Private Placement all remain subject to the approval of the TSX Venture Exchange.
It is still not closed but obviously the vendors held out for abig pay day and they will get it.
Hopefully once this deal is closed Mulgravian will begin to promote the play and begin to fund drilling. All these deals mean nothing until drill results and 43-101 resource reports confirm significant gold is present on Shoreham's property.
The next big deal should be splitting Canada and Guyana into two separate companies. The flow through will be used in Canada. Additional funding will be required to pay legal and accounting to split the company.
We all should have a very good New Year over the next several months as long as the market doesn't tank in the mean time.