Business
GMV Minerals Inc. agrees to acquire prospecting permits in Guyana, South America
GMV Minerals Inc. agrees to acquire prospecting permits in Guyana, South America
About this update from Gmv Minerals Inc
[{"type":"text","content":"\n\n\n\nVANCOUVER, Apr. 7, 2010 (Canada NewsWire Group) -- /CNW/ -- GMV Minerals Inc. (the \"Company\" or \"GMV\") (TSX-V:GMV) is pleased to announce that it has entered into an initial property acquisition agreement with Shoreham Resources Ltd. (\"Shoreham\") (TSX-V: SMH) whereby the Company has the option to acquire the right from Shoreham's wholly owned subsidiary, RPM Exploration Inc., to earn up to 100% of the mineral rights to 41 medium scale prospecting permits and 1 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: US$40,000 upon the approval of TSX Venture Exchange (the\"Exchange\")US$25,000 on or before the first anniversary of ExchangeapprovalShare issuance: 3 million common shares of GMV Minerals Inc issued intranches of 1.6 million common shares (post 2:1consolidation) on Exchange approval and 1.4 millioncommon shares (post 2:1 consolidation) on the firstanniversary following Exchange approval.Expenditures: Cumulative additional expenditures of US$3million duringa period of 4 years from Exchange approval of thistransaction (year 1-US$400,000; year 2-US$600,000;year 3-US$800,000; year 4-US$1.2million)NSR: A 2% NSR royalty, of which 1% may be purchased back byGMV at any time prior to production for a payment ofUS$1million.In addition, GMV has agreed to make available to Shoreham certain additional funds which Shoreham may utilize 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-Venture Exchange.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% of the RHG copper-gold explora...