Shoreham obtains TSX-V approval to option Guiana Shield

2010-06-10 10:02 ET - News Release

Mr. David Bending begin_of_the_skype_highlighting end_of_the_skype_highlighting reports

SHOREHAM RECEIVES TSX V APPROVAL TO OPTION GUIANA SHIELD PROPERTY PORTFOLIO WITH MULGRAVIAN VENTURES

Shoreham Resources Ltd. has received TSX Venture Exchange approval of the Guiana Shield property option agreement between the company and Mulgravian Ventures Corp., originally announced in the company's news release in Stockwatch dated April 27, 2009. Pursuant to the option agreement, Mulgravian has the option to acquire 51-per-cent working interest in the Guiana Shield properties by providing $5-million (U.S.) in property exploration expenditures and by subscribing to a private placement financing of two million units of the company at a price of 30 cents per unit, for gross proceeds of $600,000 (see news release dated April 28, 2009). Each unit consists of one common share of the company, three-quarters of a common share purchase warrant, with each whole warrant exercisable at 60 cents for a period of one year from closing, and one-quarter of a common share purchase warrant, with each whole warrant exercisable at $1.20 for a period of two years from closing. In accordance with the option agreement, Mulgravian is committed to exercising all warrants attached to the private placement for a total investment of $2.1-million (see news release in Stockwatch dated May 28, 2010). The property comprises four portfolio groups, which consist of 17 large-scale prospecting licences and 12 medium-scale prospecting permits, and encompasses a cumulative area of 214,755 acres situated in the Mathews Ridge and Upper Cuyuni River areas in northwestern Guyana. The company has an underlying option agreement with Guiana Shield Resources Inc. (news of which was released in Stockwatch April 6, 2009, and May 28, 2009; see news release in Stockwatch Jan. 5, 2010), whereby the company has the right to acquire 100-per-cent ownership of the property. The completion of the $5-million (U.S.) in property exploration expenditures shall be incurred by Mulgravian within four years of TSX-V approval of the option agreement, including $1-million (U.S.) to be incurred on or before the first anniversary. Mulgravian is required to maintain the property in good standing in accordance with the Guyana Geology and Mines Commission. Shoreham will operate the programs and be entitled to a 10-per-cent management fee on all property exploration expenditures. David Bending begin_of_the_skype_highlighting end_of_the_skype_highlighting, MSc, PGeo, president and chief executive officer of Shoreham, reports that: "This announcement is the formal ratification of the existing arrangement between Shoreham and the funding partner Mulgravian in the Guiana Shield option properties. This transaction covers multiple high-quality exploration targets which are important to the company's program of discovery and growth in Guyana."