Shoreham a Year of AccomplishmentLet’s look at the positive accomplishments for Shoreham over the past year.
From death’s door and the stock at 5 cents it closed out the year at 29 cents bid.
Farm-outs
Shoreham has acquired and farmed out four major properties to Mulgravian for total private placements of $4,480,000 at and average price per share of $52 cents/ share. To date Shoreham has received payments from the farm-outs of $1,060,000. Additional payments of $800,000 are expected in January 2010 at an average price of .457.
More importantly, Shoreham has arranged for exploration financing totaling US $12 million dollars spent over three years. In addition, Shoreham earns 10% of exploration expenditures as admin fees generating an additional US $1.2 million.
Total private placements, exploration funding and administration fees total $17,680,000 plus US exchange on $13.2 million.
Clearly these farm-outs set the stage for a very dramatic year of exploration in Guyana.
Production
REXMA has agreed to proceed with production of the alluvial gravels on Shoreham’s Marudi property. These expenditures will be credited to Shoreham in order for Shoreham to earn 75% interest in the property. REXMA will pay a royalty of 10% on gold production. Shoreham will also lease equipment to REXMA earning additional cash flow. Production is expected to begin in the first quarter 2010, subject to receipt of the necessary permits.
Financings
Shoreham raised $510,000 in flow through funding in January 2009 at 15 cents, well above market price at the time. May 25th Shoreham raised $770,000 at 30 cents. A recent financing of $1,655,000 at 30 cents/share in flow through shares was announced Dec 24th that is expected to close in January. Total financings for the year amount to $2,935,000. When farm-out financings are included, over $4 million was funded.
Corporate Re-organization
Shoreham is farming into several promising properties in Canada. It is believed, that the market is NOT ASSIGNING ANY VALUE for these properties. It has therefore, been announced that the company will be divided into two separate companies to create value for its shareholders.
Shareholders will be asked to vote on the re-organization in the first quarter 2010. The flow through funds of $1.6 million will be used to begin drilling these properties this winter.
Shoreham has accomplished a great deal in preparation for significant activities and share price appreciation in both Canada and Guyana in 2010.
| Shoreham Private Placements 2009 | | | | |
| | | | | | | | | |
| Farm-out Financings | | | | | | | |
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| Date | Property | $ Amount Paid | Shares | Price/ share | Future PP | Future Shares | Future Expl | Ave Share price for JV |
| | | | | | | | | |
| 23-Dec-08 | Black Banana | $ 250,000 | 1,250,000 | $ 0.20 | | | $ 2,000,000 | $ 0.20 |
| 27-Apr-09 | Guiana Shield | $ 600,000 | 2,000,000 | $ 0.30 | $ 1,500,000 | 2,000,000 | $ 5,000,000 | $ 0.53 |
| 4-Nov-09 | Five Star | $ 210,000 | 700,000 | $ 0.30 | $ 420,000 | 525,000 | $ 2,000,000 | $ 0.51 |
| | | $ 1,060,000 | 3,950,000 | | $ 1,920,000 | 2,525,000 | $ 9,000,000 | $ 0.46 |
| | | | | | | | | |
| close in Jan ? | Sardine Hill | | | | $ 1,500,000 | 2,187,500 | $ 3,000,000 | $ 0.69 |
| | | $ 1,060,000 | 3,950,000 | $ 0.268 | $ 3,420,000 | 4,712,500 | $ 12,000,000 | $ 0.52 |
| | | | | | | | | |
| Cash financings | | | | | | | |
| | | | | | Warrants I | | Warrants II | |
| 21-Jan-09 | FT | $ 510,000 | 3,400,000 | $ 0.15 | | | | |
| 25-May-09 | PP | $ 770,100 | 2,567,000 | $ 0.30 | 1,925,250 | $ 0.60 | 641,750 | $ 1.20 |
| 24-Dec-09 | FT | $ 1,655,000 | 5,516,667 | $ 0.30 | 2,758,333 | $ 0.40 | | |
| | | | | | | | | |
| | | $ 2,935,100 | 11,483,667 | $ 0.256 | 4,683,583 | | 641,750 | |
| | | | | | | | | |
| | | $3,995,100 | 15,433,667 | $ 0.259 | | | | |
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