Riley Exploration Permian, Inc. press release
SHOREHAM OPTIONS WAALDIJK FIVE STAR GOLD PROPERTY
NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · United States
Apr. 20, 2010 (TheNewswire.ca) --
LANGLEY, CANADA, April 20, 2010 - 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 has entered into a definitive option agreement (the "Option Agreement") with Marcel Andrew Waaldijk (the "Optionor"), pursuant to which the Optionor has agreed to grant to the Company an option (the "Option") to acquire a 100% interest in the Waaldijk-Five Star property (the "Property") in Guyana. The Option Agreement is subject to the approval of the TSX Venture Exchange (the "Exchange").
The Property abuts the Five Star Property acquired from Case Development Company Ltd. on August 15, 2009 and Joint Ventured to Mulgravian Ventures Corporation ("Mulgravian") on October 18, 2009. The Waaldijk-Five Star property is strategically located with two key claims surrounded by the existing Case Development Five Star Property while the other claims are contiguous to the eastern flank of the Case Five Star and the Guiana Shield Whana Property Package both of which the Company has a 100% option to acquire. The Property consists of eleven Medium Scale Prospecting Permits that encompass an area of approximately 11,848 acres near Matthew's Ridge in northwestern Guyana. Shoreham will be including this recently acquired property into the Shoreham Resources Ltd./Mulgravian Ventures Corporation Joint Venture on the Case Five Star Property and will have the initial cash payments ($30,000) under this new agreement covered by Mulgravian.
In order to exercise the Option and acquire a 100% interest in the Property, the Company is required to pay to the Optionor an aggregate of US $30,000 and issue to the Optionor a total of 200,000 common shares in the capital of the Company as follows:
a) Shoreham must pay to the Optionor US $10,000 on the execution of the Option Agreement (completed);
b) Within 30 days of the approval of the Option Agreement by the TSX Venture Exchange, Shoreham must issue to the Optionor 200,000 common shares of the Company and pay to the Optionor the additional sum of US $20,000.
Pursuant to the Option Agreement, the Property is subject to a 3% Net Smelter Returns Royalty (the "NSR Royalty") granted to the Optionor. The Company may at any time reduce the NSR Royalty to 0% by making a cash payment of US $250,000 for each of the first and second percentage points of the NSR Royalty and US $500,000 for the remaining 1%, for a cumulative payment amount of US $1,000,000 to the Optionor. There are no expenditure commitments included in the Option Agreement; however the Company is required to maintain the Property in good standing with the Guyana Geology and Mines Commission.
David Bending, M.Sc., P. Geo., President and CEO of Shoreham Resources Ltd. reports that: "Our agreement with Mr. Waaldijk consolidates the priority targets defined by our work in the Whana-Five Star area. While the property has significant value to the Mulgravian Five Star Joint Venture, it does not represent a change in priority for Shoreham."
For further information please visit our website at www.shoreham.ca or contact our President and CEO Mr. David A. Bending at 604-533-9288.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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