Business
SHOREHAM FARMS OUT FIVE STAR PROPERTY IN GUYANA
SHOREHAM FARMS OUT FIVE STAR PROPERTY IN GUYANA
About this update from Lithium South Development Corporation
[{"type":"text","content":"\nSHOREHAM FARMS OUT FIVE STAR PROPERTY IN GUYANA\n\n\n Nov. 4, 2009 (TheNewswire.ca) -- LANGLEY, CANADA, November 4, 2009 - 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, subject to acceptance by the TSX Venture Exchange, the Company has signed a Letter of Intent (\"LOI\") with Mulgravian Ventures Corporation (\"Mulgravian\"), a privately held company, dated October 22, 2009 whereby Mulgravian may acquire a 51% working interest in the Five Star Property by investing US $2,000,000 in exploring and advancing the Property within four years of Exchange approval and completing a CDN $210,000 private placement in Shoreham at an above market price.Mulgravian must exercise the warrants issued as part of the private placement and invest a further CDN $210,000 in Shoreham prior to each of the first and second anniversaries of Exchange approval of the LOI. The completion of this private placement shall be governed by a Private Placement Agreement, which will be subject to TSX Venture Exchange approval. Mulgravian must exercise all of their warrants as a condition precedent to maintain their rights under the terms of the LOI. It is intended that the $420,000 proceeds from the exercise of the warrants will be utilized for expenditures directly related to Guyana business. The initial placement of $210,000 may be used without specification by Shoreham management for general and administrative costs and exploration. The LOI will be replaced by a formal Definitive Option Agreement in the near future.Mulgravian will be required to invest US $500,000 in qualified exploration expenditures within one year of Exchange approval of the LOI and an additional US $500,000 per year in qualified exploration expenditures prior to the second, third and fourth anniversaries of Exchange approval for a cumulative total of US $2,000,000 in qualified exploration expenditures. Upon completion of this program, Mulgravian will become the beneficial owner of 51% of the capitalized shares of the specific Guyanese holding company with Shoreham holding the remaining 49% of the shares. Upon exercise of the option, Mulgravian and Shoreham, as shareholders of the Guyanese holding comp...