TORONTO, ONTARIO - Shoreham Resources Ltd. (TSX VENTURE: SMH), a Canadian based exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in South America and Canada, is pleased to announce that the company has signed a Letter of Intent ("LOI") with Mulgravian Ventures Corporation (a privately held company) whereby Mulgravian may acquire a 60% working interest in the Black Banana Property through a series of qualified exploration and development expenditures on the Property and direct investments in Shoreham Resources Ltd. This investment will include the cost of a due diligence review, land holding costs, payments to underlying vendors, costs to incorporate and capitalize a Guyana holding company, (Black Jack Mines Ltd.), and exploration funding. Upon completion of this program, Mulgravian shall become the beneficial owner of 60% of the capitalized shares of Black Jack Mines Ltd. with Shoreham holding the remaining 40% of the shares. During this exploration and development program, Shoreham shall be the operator of the program on behalf of Mulgravian and Black Jack Mines Ltd. In consideration for this service, Shoreham shall be entitled to charge a management fee equal to 10% of the qualified expenditures in the program.
The Black Banana Property consists of a group of 10 medium scale prospecting permits totaling approximately 8,290 acres located in northwestern Guyana near Matthews Ridge. The property lies in the same stratigraphic package as the El Callao gold district in Venezuela, which boasts a combined historical production plus reserves in excess of 25 million ounces of gold. Recent sampling on the Property has returned gold grades of up to 1,914.5 gm Au/tonne (55.8 oz. Au/ton - see SMH News Release 2008-17 dated October 8, 2008). Mulgravian has completed due diligence sampling and mapping of the property which confirmed the presence of multiple mineralized veins, visible gold in the high grade veins, and a favourable geological setting; assay results from 41 soil samples, 42 chip/channel samples and 7 vein samples are imminent. Crews are presently constructing camp facilities to support an extensive geological mapping and geochemical sampling field campaign to be launched in mid-January.
Private Placements into Shoreham:
Upon satisfactory completion of Mulgravian's due diligence review, Mulgravian will complete a private placement financing in Shoreham for $250,000 at C$0.20 per share. Within one year of exchange approval of this LOI, Mulgravian will complete a second private placement financing in Shoreham for an additional $250,000 at a price of $0.40 per share. The completion of these private placements shall be governed by private placement agreements, which will be subject to TSX Venture Exchange approval.
Exploration Expenditures:
Mulgravian will invest US$500,000 in qualified exploration expenditures within one year of exchange approval of the LOI, an additional US$600,000 in qualified exploration expenditures prior to the second anniversary and an additional US$900,000 for a cumulative total of US$ 2,000,000 in qualified exploration expenditures prior to the third anniversary.
David Bending, M.Sc., P.Geo., President and CEO of Shoreham Resources Ltd., a Qualified Person as defined in National Policy 43-101 ("NI43-101"), is responsible for all technical information contained in this news release. He reports that; "The exploration team is pleased that the due diligence program completed to December 6 confirmed our expectations for the project and gave Mulgravian Ventures the confidence to move forward on its commitments. Mulgravian has committed to invest in both Shoreham and the project. While it will not detract our focus from our Flagship Marudi Mountain prospect, the Black Banana opportunity provides for SMH's long term growth plans in Guyana."
For further information regarding our Black Banana Project please visit our website at www.shoreham.ca or our Investor Relations Hub at www.agoracom.com/IR/Shoreham where you can post questions and receive answers or review questions and answers already posted by other investors or contact our Investor Relations Representative, Mr. Mike Kachanovsky via email at mike@shoreham.ca.
The TSX Venture Exchange has not reviewed and accepts no responsibility for the adequacy or accuracy of this news release.
Contacts:
Shoreham Resources Ltd.
David Bending
(416) 867-1101
Email: dabending@cs.com
Website: www.shoreham.ca
© MarketWire 2008
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