GMV Minerals signs option for Guyanian permits

2010-04-07 09:32 ET - News Release

Mr. Ian Klassen reports

GMV MINERALS INC. AGREES TO ACQUIRE PROSPECTING PERMITS IN GUYANA, SOUTH AMERICA

GMV Minerals Inc. has entered into an initial property acquisition agreement with Shoreham Resources Ltd. whereby the company has the option to acquire the right from Shoreham's wholly owned subsidiary, RPM Exploration Inc., to earn up to 100 per cent of the mineral rights to 41 medium-scale prospecting permits and one 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: $40,000 (U.S.) upon the approval of TSX Venture Exchange; $25,000 (U.S.) on or before the first anniversary of exchange approval;
• Share issuance: three million common shares of GMV Minerals 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 $3-million (U.S.) during a period of four years from exchange approval of this transaction (year 1 -- $400,000 (U.S.); year 2 -- $600,000 (U.S.); year 3 -- $800,000 (U.S.); year 4 -- $1.2-million (U.S.));
• NSR: a 2-per-cent NSR royalty, of which 1 per cent may be purchased back by GMV at any time prior to production for a payment of $1-million (U.S.).

In addition, GMV has agreed to make available to Shoreham certain additional funds which Shoreham may use 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-V.

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 per cent of the RHG copper-gold exploration project property located 110 kilometres southwest of Dease Lake, B.C.